Plain-English explainers on the concepts behind the numbers — what dividend yield really measures, how expense ratios compound over time, why cost basis matters when you sell, and more.
We’re building out this library now, so check back soon. In the meantime, put your own numbers into our Calculators, or browse the Blog for worked examples.
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What Is Compound Interest?
Compound interest is interest calculated on both the money you originally invested and the interest that money has already earned. Instead of earning a flat amount every year, your gains start generating their own gains, which is why compound growth accelerates over time instead of moving in a straight line. Here’s a simple example: you…
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What Is Average Cost Basis?
Average cost basis is the average price you paid per share when you bought the same stock or ETF at different times and different prices. Instead of tracking each purchase separately, you combine them into one number: the total amount you spent divided by the total number of shares you own. It’s the figure most…
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What Is Dividend Yield?
Dividend yield is simply the annual dividend income a stock or ETF pays, expressed as a percentage of its current share price. If a stock trades at $100 and pays $4 per share in dividends over a year, its dividend yield is 4%. It’s a quick way to compare how much cash income different investments…