Capital Gain Yield Calculator
A Capital Gain Yield is the percentage of a price appreciation on investment. It can be calculated as the increase in the price of an investment dividing it by its original cost.
Table of Contents
Formula of Capital Gain Yield Calculator
To find, Capital gains yield, We use the following formula:
Capital Gains Yield = (Capital Gain / purchase price) x 100
here,
Capital Gain = Current price – Purchase price
Note:
To calculate perpetuity, you can use our Perpetuity Calculator.
Example
If you are an investor and you just purchase a share for $500. After 1 year your investment is $600 which is the current price of your investment, Find the Capital Gain Yield of your investment.
Given data
Current price = $600
Purchase price = $500
To Find
Capital Gains Yield = ?
Solution
We will find the Capital gain of your investment first from the equation mentioned above that is,
Capital Gain = Current price – Purchase price
Putting the values, in the above equation we have
Capital Gain = $600 - $500
Capital Gain = $100
Now, find the Capital Gain Yield. As we know the equation of Capital Gain Yield
Capital Gains Yield = (Capital Gain / purchase price) x 100
Putting the values, in the above equation we have
Capital Gains Yield = (100 / 500) x 100
Capital Gains Yield = 0.2 x 100
Capital Gains Yield = 20%
So, we have the Capital Gains Yield of 20% in 1 year.
How to use the Capital Gain Yield Calculator?
The steps to use the capital gain yield calculator are as follows:
Step 1: Enter the purchase price in the first required input.
Step 2: Enter the current price in the second required input.
Step 3: The calculator will automatically display an answer on the screen.
Calculator Use
You can find the Capital Gains Yield by using our Capital Gains Yield calculator. You have to enter the right value in the right input field and you will get your Capital Gains Yield.
