This guide explains how we calculate Cost and Return in your Trading 212 account, helping you accurately track your investment performance.
đź“„ Note
These calculations apply only to German tax residents registered under Trading 212 Germany (FXFlat Bank GmbH).
What is Cost?
Cost is the total amount you paid to buy an investment. It’s more than just the purchase price. We calculate Cost by combining:
- The original purchase price of the stock or ETF.
- Any FX (currency exchange) fees you paid when buying.
- Any government taxes you paid when buying (e.g., Stamp Duty).
đź’ˇ Example
You buy €1,000 worth of Tesla stock and pay a €5 FX fee. Your total 'Cost' for this investment is €1,005.
What is Return?
Return is your investment’s total profit or loss right now. We calculate it by comparing the investment's current market value to its total Cost.
The calculation: Current Value - Cost = Return
đź’ˇ Example
Profit: Your Tesla investment (Cost: €1,005) is now worth €1,100.
€1,100 (Value) - €1,005 (Cost) = €95 (Return)
Loss: Your Tesla investment (Cost: €1,005) is now worth €1,000.
€1,000 (Value) - €1,005 (Cost) = -€5 (Return)
Why do you include fees and taxes in the Cost?
We include these to provide the most accurate picture of your net performance.
If we only used the purchase price, your Return might look higher than it truly is. By accounting for all acquisition costs, the 'Return' figure reflects your true profit or loss. This also ensures the figures align closely with what you may need for tax reporting.
Does the Return figure include selling costs?
No. The Return you see while you hold an investment (the live return) only includes the costs associated with buying. It does not include any fees or taxes you might pay when you sell. Selling costs are only applied when you close the position. They are clearly detailed on the order review screen before you confirm the sale, and in your account history afterwards.