Profit and loss is a valuation method used to calculate the net profit or loss of an account, business venture, or other valued investment. This method involves comparing an initial valuation and a current valuation over a specified period of time to determine whether an investment is performing positively or negatively.
Capital profit (or loss) is calculated by taking the beginning account value plus all sale amounts and subtracting the ending account value and all purchase amounts.
Out-of-pocket profit (or loss) is calculated by adding all dividends, interest, and capital gain payments and subtracting any fees or margin interest from your capital profit or loss amount.