Net Asset Value (NAV) Calculator

Formula

The formula to calculate the Net Asset Value (NAV) is:

\[ NAV = \frac{A - L}{S} \]

Where:

$ NAV $ is the Net Asset Value per share ($)
$ A $ is the Fund Assets ($)
$ L $ is the Fund Liabilities ($)
$ S $ is the Outstanding Shares

What is Net Asset Value?

Net Asset Value (NAV) is a measure of the actual value of a specific mutual fund. It represents the per-share value of the fund after accounting for all assets and liabilities. Since mutual funds are collections of many stocks or other securities, the NAV provides a snapshot of the fund's value per share, which is crucial for investors to assess the performance and value of their investment.

Example Calculation

Let's consider an example:

Fund Assets (A): $10,000,000
Fund Liabilities (L): $1,000,000
Outstanding Shares (S): 500,000 shares

Using the formula to calculate Net Asset Value:

\[ NAV = \frac{10000000 - 1000000}{500000} = \frac{9000000}{500000} = 18 \, \text{dollars per share} \]

This means that the net asset value per share is $18.