How to calculate buy and hold return

Written by timothy banas
  • Share
  • Tweet
  • Share
  • Pin
  • Email
How to calculate buy and hold return
Learning to calculate the returns on your investments will improve your financial management skills. (Pennies on the Dollar - one dollar bill with pennies. image by Andy Dean from

In investment, the "buy and hold" strategy refers to buying a financial asset and holding it for a long period of time as its value appreciates. You can calculate the return on such an investment only when you have sold the asset and can compare how much you invested in it--its cost basis--to how much you sold it for. The returns on investment in such cases are simple to calculate and usually expressed as percentages.

Skill level:
Moderately Easy

Other People Are Reading

Things you need

  • Calculator

Show MoreHide


  1. 1

    Gather the data about your investment, particularly its cost basis and how much you sold it for. For example, consider an investment where you purchased stock for £13,000 and sold it several years later for £22,750.

  2. 2

    Subtract the cost basis from the sale price to calculate your profit on the investment. In the example above, the calculation would look like this:

    Profit = £22,750 - £13,000 = £9,750

  3. 3

    Divide the profit by the cost basis and multiply the answer by 100 per cent to calculate your final return on investment. In the example, the calculation would look like this:

    Return on Investment = £9,750 / £13,000 x 100 per cent = 75 per cent

Don't Miss

  • All types
  • Articles
  • Slideshows
  • Videos
  • Most relevant
  • Most popular
  • Most recent

No articles available

No slideshows available

No videos available

By using the site, you consent to the use of cookies. For more information, please see our Cookie policy.