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Net asset value (NAV) per share is an investment fund’s net assets divided by its shares outstanding. To calculate it, subtract the fund’s liabilities from its assets, then divide the result by the number of shares. For example, $100 million in assets minus $10 million in liabilities, divided by 10 million shares, equals $9 per share.
What NAV per share measures
NAV is the value of an investment company’s assets after its liabilities are subtracted. NAV per share expresses that net value for each share of the fund. It is an accounting measure of the fund’s net assets—not the value of one individual holding.
Assets can include portfolio investments, cash, and accrued income; liabilities can include accrued expenses. The fund’s valuation policies determine how portfolio holdings are valued. A fund filing describes these inputs and procedures; see the SEC-filed fund disclosure for an example of fund-specific details.
How to calculate NAV per share
The formula is:
NAV per share = (total assets − total liabilities) ÷ shares outstanding
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- Add the fund’s assets, including investments and other assets such as cash and accrued income.
- Subtract the fund’s liabilities to find its net assets.
- Divide net assets by the number of shares outstanding. If the fund has multiple share classes, use the assets and share count allocated to the relevant class.
Worked example
Suppose a fund has $100 million in assets, $10 million in liabilities, and 10 million shares outstanding:
- Net assets: $100 million − $10 million = $90 million.
- NAV per share: $90 million ÷ 10 million shares = $9 per share.
This is the example given by Investor.gov. A change in asset values, liabilities, or shares outstanding can change the result.
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Is NAV per share the price an investor pays?
Not always. Mutual-fund and traditional unit investment trust (UIT) purchase or redemption prices are based on NAV per share, with applicable fees added to or deducted from the transaction amount. The investor’s final price can therefore differ from NAV per share.
ETF shares trade between investors on an exchange. Their market price may be above or below NAV because it reflects supply, demand, and market conditions as well as the underlying fund’s assets. ETF creation and redemption activity and arbitrage can help pull market prices toward NAV, but the two figures are not the same measure. Investor.gov explains the distinction in its ETF guidance.
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| Measure | What it represents | How it is determined |
|---|---|---|
| NAV per share | The fund’s net assets for each share | Assets minus liabilities, divided by shares outstanding; based on the fund’s valuation process |
| ETF market price | The price at which ETF shares trade on an exchange | Trading in the secondary market, including supply, demand, and market conditions |
| Mutual-fund transaction price | The amount applied to a purchase or redemption | Based on NAV per share, adjusted for applicable fees |
When funds calculate NAV
Many funds calculate NAV on a regular schedule, but requirements and timing vary by fund type and governing documents. Mutual funds and UITs generally calculate NAV at least once each business day, typically after major U.S. exchanges close; closed-end funds are not subject to that requirement. ETFs calculate NAV every business day. See the SEC’s mutual-fund guidance and ETF bulletin for these distinctions.
The exact calculation time is fund-specific. One SEC-filed fund disclosure says that fund ordinarily calculates NAV at the NYSE regular close, normally 4:00 p.m. Eastern, on days the exchange is open. That disclosed time applies to that fund, not universally to all funds. Consult a fund’s prospectus or other disclosure for its valuation and calculation policies.
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