What is Percentage Gain?
In the world of investing, How much did you make? is a common question. Some might say, I made ₹5,000, while others say, I made 20%. While ₹5,000 sounds like a lot of money, it doesn't tell the whole story. If you invested ₹1 Lakh to make that ₹5,000, you only made a 5% profit. But if you invested ₹10,000 to make that same ₹5,000, you made a massive 50% profit! This is why Percentage Gain is the most important number in your portfolio.
In 2026, with the Indian stock market growing rapidly and new IPOs listing every week, percentage gain helps you compare different apples and oranges. It levels the playing field, allowing you to see which of your investments is truly working the hardest for you. Whether you are tracking a small SIP or a large IPO allotment, knowing your percentage gain is the only way to measure your success as a smart investor.
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What is Percentage Gain?
In simple words, Percentage Gain is a way of showing your profit as a portion of the money you originally spent. It tells you the rate of growth of your money.
- Absolute Gain: The actual cash profit in Rupees (e.g., ₹2,000).
- Percentage Gain: The profit expressed as a percentage of your initial investment (e.g., 20%).
How to Calculate Percentage Gain (2026 Formula)
Calculating your gain percentage is a basic two-step process. First, find your total profit, and then see what percentage it is of your starting cost.
The Simple Formula:
Percentage Gain % = (Selling price - purchase price/purchase price) X 100
Step-by-Step Example:
Let’s say you were allotted 1 lot of an IPO at an Issue Price of ₹500 per share. On the listing day, the stock opens at ₹750.
- Calculate the Profit (Absolute Gain): ₹750 - ₹500 = ₹250 per share.
- Divide by Purchase Price: ₹250 / ₹500 = 0.5
- Multiply by 100: 0.5 x 100 = 50%
This means your money grew by 50% in just a few days!
Quick Comparison: Absolute vs. Percentage
Feature
Absolute Gain (Cash)
Percentage Gain (%)
Focus
How much money was made.
How efficient the investment was.
Comparison
Hard to compare different sized bets.
Easy to compare any two investments.
Goal
Useful for counting your eggs
Useful for strategy and planning.
Example
I made ₹1,000 profit
I made a 10% return
Why Percentage Gain Matters in 2026?
- Performance Tracking: If your bank FD gives you 7% per year, but your IPO gives you 20% in three days, the percentage gain shows you exactly where your wealth is building faster.
- Accounting for Costs: In 2026, a smart investor also subtracts Brokerage Fees and STT (Securities Transaction Tax) from their selling price before calculating the percentage. This gives you the Net Percentage Gain of the actual money that stays in your pocket.
- Setting Targets: Most traders have a goal, like I will sell when I reach 15% gain Using percentages makes it easier to set these rules across different stocks.