1. What is Percentage Loss?

Percentage loss measures how much value an investment has lost relative to its original purchase price. It's a key metric for investors to assess the performance of their investments.

2. How Does the Calculator Work?

The calculator uses the percentage loss formula:

Where:

• Buy Price — Original purchase price of the stock
• Sell Price — Price at which the stock was sold

Explanation: The formula calculates what percentage of the original investment was lost when the stock was sold at a lower price.

3. Importance of Percentage Loss Calculation

Details: Calculating percentage loss helps investors make informed decisions about whether to hold or sell investments, assess portfolio performance, and implement tax-loss harvesting strategies.

4. Using the Calculator

Tips: Enter the original buy price and the sell price in dollars. Both values must be positive numbers, with buy price greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a significant percentage loss?
A: While it varies by investor, losses greater than 10% often trigger reevaluation of the investment thesis.

Q2: Can percentage loss be more than 100%?
A: With regular stocks, the maximum loss is 100% (if stock becomes worthless). With leveraged products, losses can exceed 100%.

Q3: How does this differ from dollar amount loss?
A: Dollar loss shows absolute money lost, while percentage loss shows relative impact, making it easier to compare different investments.

Q4: Should I include trading fees in the calculation?
A: For precise calculations, yes. Add fees to buy price and subtract from sell price for net percentage loss.

Q5: How can I use this for tax purposes?
A: Percentage loss helps identify tax-loss harvesting opportunities where you can offset capital gains with losses.