How to Calculate Percentage Increase in Stock Price

What is Percentage Increase?

Percentage increase measures the change in a stock's price over a specific period, expressed as a percentage of the original price. It's a simple yet powerful way to assess investment performance.

Going beyond just tracking the dollar amount of profit or loss on a particular share, Percentage increase allows you to quickly see and make sense of the size of a stock's price movement compared to similar investments.

The Formula for Percentage Increase

The formula is straightforward:

Percentage Increase = [(New Price - Original Price) / Original Price] x 100

Where:

• New Price: The current or final stock price.
• Original Price: The initial purchase price of the stock.

This formula applies whether you're tracking daily fluctuations or long-term growth.

Step-by-Step Calculation

1. Find the Original Price: Determine the price at which you initially bought the stock.
2. Find the New Price: Identify the current price of the stock.
3. Calculate the Difference: Subtract the original price from the new price.
4. Divide by the Original Price: Divide the result by the original price.
5. Multiply by 100: Multiply the result by 100 to express it as a percentage.

Example Calculation

Let's say you bought a share of stock for $50 (Original Price) and its current price is $75 (New Price).

Percentage Increase = [($75 - $50) / $50] x 100

Percentage Increase = ($25 / $50) x 100

Percentage Increase = 0.5 x 100

Percentage Increase = 50%

Therefore, the stock price has increased by 50%.

Why is Percentage Increase Important?

• Performance Evaluation: Percentage increase provides a clear picture of how well your investments are performing.
• Comparison: It allows you to compare the performance of different stocks, regardless of their initial prices.
• Volatility Assessment: Tracking percentage changes helps you gauge the volatility of a stock.

Using Percentage Increase with percentagefinder.org

Calculating percentage increase doesn't have to be a chore. Our tool at percentagefinder.org makes it easy!

1. Enter the Original Price: Input the initial purchase price of the stock.
2. Enter the New Price: Input the current price of the stock.
3. Click Calculate: Our tool instantly calculates the percentage increase.

This simple process saves you time and ensures accuracy, whether you're on your phone or computer.

Beyond Stock Price: Other Uses

The percentage increase calculation isn't limited to stock prices. Investors can use it to assess other key financial figures, such as:

• Revenue Growth: Track the percentage change in a company's revenue over time.
• Profit Margin: Monitor the increase or decrease in profit margins.

Tips for Using Percentage Increase Effectively

• Consider Fees and Dividends: Include brokerage fees and dividends for a more accurate representation of your actual return.
• Compare Against Benchmarks: Compare your stock's percentage increase against relevant market indexes like the S&P 500 to gauge its relative performance. Consider using the general /blog/calculate-percentage-increase calculator and setting one value as the stock and another value as the S&P500.
• Long-Term Perspective: Don't get swayed by short-term fluctuations. Focus on the long-term percentage increase to assess the overall health of your investment.

Limitations

The percentage increase formula provides a simple snapshot. It doesn't account for factors like inflation, reinvested dividends, or the time value of money. For a comprehensive analysis, consider using more advanced financial metrics.

Conclusion

Knowing how to calculate percentage increase in stock price is an essential skill for any investor. It provides a quick and easy way to assess performance, compare investments, and track volatility. With tools like the one on percentagefinder.org, this calculation becomes even simpler, allowing you to focus on making informed investment decisions.