What is the formula to find total earnings from an investment?

To find the total earnings from an investment, it is essential to account for all sources of income generated by the investment and subtract the associated costs. The total earnings can be accurately determined by adding the income generated from dividends and the selling price of the investment, while subtracting any brokerage fees and the total cost of the investment.

In this context, dividends represent the income earned from holding the investment, and the selling price is the amount received from selling the investment. Brokerage fees are expenses incurred during the process of buying or selling the investment, and the total cost includes the original investment amount. By combining these elements in the specified manner—income sources minus expenses—you arrive at the proper representation of total earnings:

Total Earnings = (Dividends + Selling Price) - (Brokerage + Total Cost).

This captures the net gain or loss from the investment, allowing for a clear understanding of its financial performance.