How to Calculate Realized Return

How to Calculate Realized Return

Step 1

Write this equation:

Realized Return = Realized Gain/Cost of investment x 100

This is what you will use to calculate your realized return as a percentage of your total investment.

Step 2

Analyze your investment. Write down its initial cost--how much money you invested in the first place--and its realized return--how much money you have withdrawn from the investment WITHOUT having dipped into its initial value.

Step 3

Plug the numbers into the formula and calculate your answer. For example, if you had invested $1,000 dollars, then realized a gain of $100 when the total investment had increased to $1,100, the formula would look like this:

Realized Return = $100/$1000 x 100 = 10 percent.

In this case, you would have earned a 10 percent realized return.