Gain and loss calculator
The Invezz gain and loss percentage calculator lets you calculate the gains or losses on your investments and trades. Keep reading to see how our gain and loss calculator works, and why it’s important to monitor your gains and losses.
How to use our gain and loss calculator
To use our gain and loss calculator, just follow these steps:
- Enter in your starting balance.
- Select whether you realised a gain or incurred a loss.
- The next line will then include three fields: amount gained or lost, percentage gained or lost, and your ending balance. Enter a value in any of the three fields, and our gain and loss calculator will tabulate the other two.
How the gain and loss calculator works
The gain and loss calculator determines the gains or losses of your trade(s). It can be shown in either the currency you’re trading with, or as a percentage.
Why should I use it?
Because it will help you better understand what the size of a gain or loss means in terms of your portfolio’s future health. For instance, let’s say you suffer a 20% loss on a trade. To get back to square one, you need to make more than 20%; you actually need to land a 25% gain just to return to zero. Suffer a 33% loss and you need a huge 50% gain just to get back to break even. Being honest and accountable with your trades (especially when you lose money) will help you develop healthy habits to manage your risk, including cutting losses short whenever possible.
What is a gain or a loss?
As an investor, a gain refers to the amount (expressed in either your preferred trading currency or as a percentage) you made on a trade, while a loss refers to the amount you gave up on a trade. Though there are all kinds of ways to invest, many traders believe that cutting your losses short and letting your winners run is the best way to make big profits in the long run.