The Indian stock market offers a wealth of opportunities, but keeping track of your gains (and losses) is essential for navigating the ups and downs. This blog equips you with the formulas to calculate your stock gains and plan your future investments with confidence.
Formula for Stock Gains: Decoding Your Profit:
Total Cost = Price per Share × Number of Shares [Invested Amount]
New Total Value = New Price per Share × Number of Shares [Return Amount]
Gain = New Total Value – Total Cost [Profit]
Example in action:
If a price of a share is Rs.50 , you buy 500 shares. If the price rises to Rs.70 you’ll get Rs.10,000 as profit
Calculation:
Total Cost = Rs 50 × 500 = Rs 25,000 [Invested Amount]
New Total Value = Rs 70 × 500 = Rs 35,000 [Return Amount]
Gain = Rs 35,000 – Rs 25,000 = Rs 10,000 [Profit]
Formula for How Many Shares to Buy: Planning Your Next Move
Feeling bullish? This formula helps you determine how many shares you can buy with your designated budget:
Shares You Can Buy = Amount ÷ Price per Share
Example in action:
If you decide to invest Rs.5000 in stock. If the price of the stock is Rs.150 you can by 33 Shares.
Calculation:
Shares You Can Buy = Rs 5,000 ÷ Rs 150 = 33 shares
