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 = (%)