How to Calculate Investment Return

An investment return is a measure of the percentage of profits of an investment. Investment returns are usually calculated so that they can be compared to the returns of other investments to see which ones are more successful and how the investment can yield more profits in the future.

1. Figure the total amount of money put toward the investment. Include any fees, taxes or interest associated with the investment to determine the total amount. For example, if you bought $1,400 worth of stock and your fees were $200 and your taxes were $400, your total investment would be $2,000.


2. Calculate the total amount of losses associated with your investment. Losses include fines or failed stocks that might have occurred. If your total investment is $2,000 and you invested $200 of that into company stock that was later sold for $50 then your total loss would be $150.


3. Calculate the total amount of profits associated with your investment. Profits may come from sales, trades or interest that was paid to you. If your original investment was $2,000 and you invested $200 of that in company stock that later sold for $500, your profits would be $300. Subtract your losses from your profits to determine the total amount of profit.


4. Use the formula "profit/investment = total return on investment" to determine the amount of return on investment by dividing the profits by the total investment. If your total investment is $2,000 and your total profits are $300 you would set up the formula like this: $300/$2,000= 15 percent investment return.