Enter the average stock purchase price ($), the average stock selling price ($), and the total number of stocks purchased into the Average Return on Stocks Calculator. The calculator will evaluate and display the Average Return on Stocks. 

Average Return on Stocks Formula

The following formula is used to calculate the Average Return on Stocks. 

AROS% = (SP-PP)/PP  *100

AROS$ = (SP-PP) * #S

  • Where AROS is the Average Return on Stocks (%)
  • SP is the average stock purchase price ($) 
  • PP is the average stock selling price ($) 
  • #S is the total number of stocks purchased 

How to Calculate Average Return on Stocks?

The following example problems outline how to calculate Average Return on Stocks.

Example Problem #1

  1. First, determine the average stock purchase price ($).
    • The average stock purchase price ($) is calculated to be : 50.
  2. Next, determine the average stock selling price ($). 
    • The average stock selling price ($) is measured to be: 75.
  3. Next, determine the total number of stocks purchased. 
    • The total number of stocks purchased is found to be: 80.
  4. Finally, calculate the Average Return on Stocks using the formula above: 

AROS = (SP-PP)/PP *100

The values given above are inserted into the equation below and the solution is calculated:

AROS = (75-50)/50 *100 = 50.00 (%)

Example Problem #2

The variables needed for this problem are provided below:

average stock purchase price ($) = 80

average stock selling price ($) = 100

total number of stocks purchased = 1000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

AROS = (SP-PP)/PP * #S *100 = (%)