1. What is the Percentage Gain Formula?

The Percentage Gain formula calculates the percentage increase or decrease in value between an initial investment and its current value. It's commonly used in cryptocurrency and stock market investments to measure performance.

2. How Does the Calculator Work?

The calculator uses the percentage gain formula:

Where:

• \( GP \) — Percentage Gain (%)
• \( CV \) — Current Value ($)
• \( IV \) — Initial Value ($)

Explanation: The formula calculates the relative change in value as a percentage of the original investment amount.

3. Importance of Percentage Gain Calculation

Details: Calculating percentage gain is essential for evaluating investment performance, comparing different investment opportunities, and making informed financial decisions in cryptocurrency trading.

4. Using the Calculator

Tips: Enter the initial investment value and current value in dollars. Both values must be positive numbers, with initial value greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage gain mean?
A: A negative percentage gain indicates a loss, meaning the current value is less than the initial investment amount.

Q2: How is this different from absolute gain?
A: Percentage gain shows relative performance, while absolute gain shows the actual dollar amount gained or lost.

Q3: Can I use this for multiple investments?
A: This calculator is designed for single investments. For multiple investments, you would need to calculate the weighted average percentage gain.

Q4: Does this account for fees and transaction costs?
A: No, this calculates gross percentage gain. For net gain, you should subtract any fees and transaction costs from the current value.

Q5: Is this suitable for all types of investments?
A: Yes, the percentage gain formula works for any investment type where you can measure initial and current values in monetary terms.