How to Calculate Cumulative Investment Percentage

If you have an investment portfolio, you will be aware that there are generally two types of investments that pay out dividends. The first type pays dividends to you in the form of an income, whereas the second type reinvests any earned dividends back into the original investment. The latter, which tend to be either mutual funds or certificate of deposits, can be analyzed by using the cumulative investment percentage, which measures what percentage of an investment is composed of the capital put in.


Step 1

Gather the information needed for your calculation. Specifically, you will need to know the original amount invested in the asset or fund, the fund's current total value and the amount reinvested into the fund. You can easily obtain this information from your fund's financial statements, which are usually issued on either a monthly or quarterly basis, depending on the fund.


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Step 2

Add the amount reinvested into the fund to the original amount invested. For example, if you originally invested $1,000 into the fund, and the fund generated $300 over the course of two years, and this $300 was automatically reinvested into the fund, your total invested would be $300.

Step 3

Subtract the result you obtained in Step 2 from the total value of the fund. For example, if the current value of the fund is $1,600, your result would be $300 by using the above example and assuming that further reinvestment of dividends have stopped. Divide this result by the fund's total value. This would give 0.1875, rounded to the nearest ten thousandth. Multiply by 100. This gives a yield of 18.75 percent. Subtract this result from 100. This gives a cumulative investment percentage of 81.25 percent.




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