Capital Gains Calculator ?

[PIppety]

Hiya all,

I was just wondering if anyone could assist. I am looking for a spreadsheet or a way to work out Capital Gains. What I would like to do is just put in the following info:

Date purchased
Purchase Price
Current Date
Current Value

I have seen a previous post about this on the old forum but it seems to only cater for years when I would like to get down to days (ie. If you've only had an IP for 2 years and 8 months then the 8 months probably has a large bearing on the result).

Any help would be greatly appreciated.

Cheers
PIppety

p.s. I hope that made sense !

:D

[ruk]

have a look at the postings in prop. manag. forum, titled CPI.

[duncan_m]

Here's the Excel function I use:

=IF(L5>1, ((F5/C5)^(1/L5)-1), "NA")


Where

L5 = Number of years held (including decimal places eg 1.25)
F5= Current Value
C5= Purchase Price

It just shows NA in the cell if its been held for less than a year as the results arent very useful..


Hope this helps.

Regards,

Duncan.

[Ross Sneddon]

Hi Duncan

Good one. The calculator is simple and works

Regards

Ross

[PIppety]

Hi Duncan,

Thanks alot for the formula. I haven't tried it yet but I know it will be very useful !

Thanks again.

PIppety

[PIppety]

Duncan,

You are an absolute legend ! This is just what I was looking for!

Cheers
:D PIppety

[JFEWSTER]

Duncan,

Would you care to explain to me what the logic is with this formula. I dont get it?

[duncan_m]

Originally posted by JFEWSTER
Duncan,

Would you care to explain to me what the logic is with this formula. I dont get it?



John

Not being a mathemetician.. I dont get it either. I'm not losing any sleep though.


Regards,

Duncan.

[JoannaK]

I just found this file hidden away on my computer.

Hope it helps

[Donna L]

I use a Texas Solar B35 calculator. I've never bothered with the decimal points but can't see why you couldn't

[tonyd]

Originally posted by duncan_m
Here's the Excel function I use:

=IF(L5>1, ((F5/C5)^(1/L5)-1), "NA")

Where

L5 = Number of years held (including decimal places eg 1.25)
F5= Current Value
C5= Purchase Price

It just shows NA in the cell if its been held for less than a year as the results arent very useful..

Hope this helps.

Regards,

Duncan.


Did someone say maths!

For JFEWSTER...

This is a "Capital Growth" calculator rather than a "Capital Gains" calculator.

We want the growth rate per annum, over a number of years.

The growth rate X over n years is

X = Current value/Purchase price.

To get an annualized rate, you need to equate to this to a compounding factor. Hence

(1 + g)^n = X

Solve for g gives

g = X^(1/n) - 1

cheers, Tony

[brains]

Donna L

I have a Texas B35 financia calculator as well, i havnt had much time to check it out, but what i have looked at i havnt been able to figure out......maybe you can give me some pointers....:)