1. What is Investment Gain/Loss?

Investment Gain/Loss represents the realized profit or deficit from an investment after accounting for all associated fees and costs. It measures the actual financial performance of an investment over a specific period.

2. How Does the Calculator Work?

The calculator uses the Investment Gain/Loss formula:

Where:

• \( \text{End Value} \) — Final value of the investment
• \( \text{Start Value} \) — Initial investment amount
• \( \text{Fees} \) — All associated transaction and management fees

Explanation: This calculation provides the net realized gain or loss, which is crucial for accurate financial reporting and tax purposes.

3. Importance of Gain/Loss Calculation

Details: Accurate gain/loss calculation is essential for investment performance evaluation, tax reporting, portfolio management, and informed decision-making for future investments.

4. Using the Calculator

Tips: Enter the initial investment amount, final investment value, and all associated fees in your local currency. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between realized and unrealized gain/loss?
A: Realized gain/loss occurs when an investment is actually sold, while unrealized refers to paper gains/losses on investments still held.

Q2: Should I include dividend income in the end value?
A: Yes, include all cash returns (dividends, interest) received during the investment period in the end value calculation.

Q3: What fees should be included?
A: Include all transaction fees, brokerage commissions, management fees, and any other costs associated with the investment.

Q4: How is this different from ROI?
A: ROI calculates percentage return, while gain/loss shows the absolute monetary amount gained or lost.

Q5: Why is this important for taxes?
A: Realized gains are typically taxable, while realized losses may be deductible, making accurate calculation crucial for tax compliance.