Capital growth rate

If you want to measure the increase of your capital over time, you can calculate the difference between the initial value and the current value.

Example:

Let’s say you made an investment in a stock one year ago.

Its price was 100 Euro. Today, one year later, the price is: 110 Euro

Now calculate the capital growth rate:

Formula: Todays value / initial value

110/100 = 1,1

Now you know the capital growth rate for one year is 1,1

Example 2 -Scaling the capital growth rate (downscaling)

Now lets calculate it for one month -> If you want to find the growth rate for one month you need to use the root function

You can also write this as (1,1)^(1/12)= 1,0079

Further samples: