Capital Gains Yield Calculator
The Capital Gains Yield Calculator helps investors determine the capital gains yield of an investment. This metric calculates the return from the appreciation of an asset's price over time, allowing investors to understand how much profit has been made through the asset's price increase.
Capital Gains Yield Calculator
What is Capital Gains Yield Calculator?
The Capital Gains Yield Calculator is a tool that helps you calculate the capital gains yield, which is a measure of an investment’s return based on the change in the price of the asset over time. It is an important metric for evaluating investment performance, especially when capital appreciation is the main source of return.
How to Use Capital Gains Yield Calculator?
To use the Capital Gains Yield Calculator, input the initial price and final price of your investment. Once you click "Calculate Capital Gains Yield," the calculator will compute the capital gains yield, which indicates how much return you earned based on price appreciation over time.
Formula of Capital Gains Yield Calculator
The formula used to calculate the Capital Gains Yield is:
Capital Gains Yield = ((Final Price - Initial Price) / Initial Price) * 100
Advantages of Capital Gains Yield Calculator
- Helps assess the price appreciation of an investment over a period of time.
- Allows investors to measure the return based on asset price changes, excluding dividends or interest.
- Useful for comparing investments with different risk and return profiles.
- Simple and easy-to-use tool for investors looking to evaluate the performance of their assets.
Disadvantages of Capital Gains Yield Calculator
- Does not account for income generated from dividends or interest, focusing only on price changes.
- May be misleading for investments that are not traded frequently, as price appreciation can be volatile.
- Does not consider external factors such as market conditions, inflation, or transaction costs.