1. What is Percentage Investment Increase?

The Percentage Investment Increase measures how much an investment has grown relative to its original value. It's a key metric for evaluating investment performance over time.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Investment — Current value of the investment
• Old Investment — Original value of the investment

Explanation: The formula calculates the relative change between the new and old investment values, expressed as a percentage of the original investment.

3. Importance of Tracking Investment Growth

Details: Monitoring percentage increases helps investors assess performance, compare different investments, and make informed decisions about portfolio management.

4. Using the Calculator

Tips: Enter both investment values in the same currency. The old investment must be greater than zero for the calculation to be valid.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good percentage increase?
A: This depends on the investment type and timeframe. Generally, higher is better, but should be compared to relevant benchmarks.

Q2: Can the percentage be negative?
A: Yes, if the new investment is less than the old one, the result will be negative, indicating a loss rather than a gain.

Q3: How does this differ from absolute increase?
A: Absolute increase shows the dollar amount change, while percentage increase shows the relative change, which is better for comparisons.

Q4: Should I include dividends/reinvestments?
A: For accurate performance measurement, include all cash flows and reinvestments in your new investment value.

Q5: How often should I calculate this?
A: Regular calculations (monthly, quarterly) help track performance, but avoid overreacting to short-term fluctuations.