Calculating the performance percentage on an investment grants insight into the profitability of the venture. If you have multiple investment vehicles, this performance percentage can help make your decision concerning which investment should receive additional funds. Another term used for performance is return on investment, or ROI. This is simply the percent gain or loss on an investment, which tells you exactly how it is performing.
1. Subtract the amount of the initial investment from the final value. As an example, if you invested $20,000, which grew to $30,000, the difference would be $10,000.
2. Divide this number by the amount of the initial investment. In the example, $10,000 divided by $20,000 gives you 0.50.
3. Multiply this figure by 100 to convert into percentage format. In the example, 0.50 times 100 gives you a 50 percent return on investment.
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