Stock Percentage Increase Formula:
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Stock Percentage Increase (SPI) measures the percentage growth in a stock's price from its original purchase price to its current market price. It helps investors evaluate the performance of their investments.
The calculator uses the SPI formula:
Where:
Explanation: The formula calculates the percentage difference between the current price and the original purchase price, showing the investment's growth rate.
Details: SPI is crucial for investors to assess investment performance, make informed decisions about holding or selling stocks, and compare different investment opportunities.
Tips: Enter current price and original price in dollars. Both values must be positive numbers to calculate the percentage increase.
Q1: What does a negative SPI indicate?
A: A negative SPI indicates a percentage decrease in stock value, meaning the current price is lower than the original purchase price.
Q2: How often should I calculate SPI?
A: Regular monitoring (weekly, monthly, or quarterly) helps track investment performance, but avoid overreacting to short-term fluctuations.
Q3: Does SPI account for dividends?
A: No, SPI only measures price appreciation. Total return calculations should include dividends for a complete performance picture.
Q4: Can SPI be used for other investments?
A: Yes, the SPI formula can be applied to any asset with a purchase price and current market value, including real estate and commodities.
Q5: What's considered a good SPI?
A: A "good" SPI depends on market conditions, investment timeframe, and individual goals. Generally, positive SPI that outperforms market benchmarks is desirable.