Forum Discussion
How to calculate amount needed to get to max percentage
Hi everyone,
So I am working on an excel sheet for my investments. What I would like to calculate is how many assets I need to buy to have the transaction costs be max. 2% of the total sum.
I can do it the other way around, lets say:
50 euro Asset = X
4 euro transaction costs = Y
2% max costs = Z
(1*Y)/X=29%.
So I'd like to know how may of X I need to buy to bring the 8% down to two in this case. If you could help me with a formula that would be great.
Thanks in advance!
mtthplysr Not sure about your maths as a transaction cost of 4 on a purchase of 50 equals 8%. Not 29%. But perhaps I have misunderstood.
If you now want to limit the cost %, you can use a formula like:
Y / max % / X = n
Used in your example that would be 4 / 0.02 / 50 = 4.
To check it, buy 4 at 50 = 200. Cost % = 4 / 200 = 2%
1 Reply
mtthplysr Not sure about your maths as a transaction cost of 4 on a purchase of 50 equals 8%. Not 29%. But perhaps I have misunderstood.
If you now want to limit the cost %, you can use a formula like:
Y / max % / X = n
Used in your example that would be 4 / 0.02 / 50 = 4.
To check it, buy 4 at 50 = 200. Cost % = 4 / 200 = 2%