How to Calculate Portfolio Value

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Any investment worth owning is worth learning how to measure. While brokers are required to send you a monthly statement that includes your current portfolio value, it is important to be able to verify this number with your own calculations. You can use one method recommended by the IRS. It is referred to as mark-to-market and involves multiplying the current share price of the stock by the number of shares owned and summing these values for a total portfolio value.

Step 1

Determine the current value of each stock in your portfolio. Let's say you own a portfolio with two stocks: Stock A is priced at $10 a share, Stock B at $12 per share.

Step 2

Determine the number of shares of each stock you own. Let's say you own 1,000 shares of Stock A and 100 shares of Stock B.

Step 3

Multiply the current price by the number of shares owned to find the current market value of each stock in your portfolio. Stock A has a market value of $10,000 (1,000 * $10) and Stock B has a market value of $1,200 ($12 * 100).

Step 4

Sum both amounts for the total market value. The amount is $10,000 + $1,200 = $11,200. This is the total value of your portfolio.

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