Average Return on Stocks Calculator

Formula

To calculate the Average Return on Stocks:

\[ AROS = \left( \frac{SP - PP}{PP} \right) \times 100 \]

Where:

$AROS$ is the Average Return on Stocks (%)
$SP$ is the Average Stock Purchase Price (\$)
$PP$ is the Average Stock Selling Price (\$)

What is Average Return on Stocks?

Average Return on Stocks (AROS) is a measure of the percentage return on an investment in stocks. It is calculated by comparing the average selling price of the stocks to the average purchase price, providing an indication of the profitability of the investment.

Example Calculation 1

Let's assume the following values:

Average Stock Purchase Price ($SP$) = $50
Average Stock Selling Price ($PP$) = $60
Total Number of Stocks Purchased ($S$) = 100

Using the formula:

\[ AROS = \left( \frac{60 - 50}{50} \right) \times 100 = 20 \% \]

The Average Return on Stocks is 20%.

Example Calculation 2

Let's assume the following values:

Average Stock Purchase Price ($SP$) = $30
Average Stock Selling Price ($PP$) = $45
Total Number of Stocks Purchased ($S$) = 200

Using the formula:

\[ AROS = \left( \frac{45 - 30}{30} \right) \times 100 = 50 \% \]

The Average Return on Stocks is 50%.