The Cash Invested number is a way to determine the amount taken out of your “pocket” and invested in a particular security position. It is different from Cost Basis, which is intended to be a tax number, used to determine realized gains. Whereas Cost Basis numbers increase with reinvested dividends, Cash Invested is unaffected by dividends, reinvested or not.
There are three different Cash Invested report columns available on web reports, based on different interpretations of how the number should be calculated. Each one is detailed below, including sample calculations toward the end of the document, to help you determine which calculation you prefer.
Note
•
By default, Cash Invested for Cash and Money funds is blank on reports. If you would like for it to be displayed, contact your Service Team. If displayed, the Cash Invested number for cash securities will always equal the cash balance in the portfolio.
•
Dollar gain is a related calculation, displaying the Current Value of a position minus the Cash Invested.
There is a different Dollar Gain calculation for each Cash Invested calculation. If you are also displaying the Dollar Gain or Percent Dollar Gain calculations with the Cash Invested column, then your Service Team will pair the columns appropriately.
Cash Invested 1 is uses an average purchase price per share. For securities that allow reinvested dividends such as, equities, mutual funds, and user defined securities, Cash Invested 1 is calculated:
(Purchase Price + Fees / Number of Shares Held) x Quantity Held
For all other security types, Cash Invested is the same as the Cost Basis.
Note
For Cash Invested 1, only additional purchases affect Cash Invested. Dividends, reinvested or not, do not affect the calculation except for the total amount of shares held. Also note that Cash Invested 1 will never be below zero.
Cash Invested 2 is not an average, but instead focuses on the money invested and gained through buys and sells of the position. It is calculated: Purchase price of all buys (including fees) minus net proceeds of all sells
Note
Cash Invested 2 can be a negative number if the gross proceeds of sell transactions are greater than the original purchase amount.
Cash Invested 3 is calculated exactly the same as Cash Invested 2, except the number will never be below zero. If the gross proceeds of a sell transaction exceed the purchase price, Cash Invested will be zero.
DocumentID: SPT010915
Last Updated: March 18, 2014

Below is a description of how the different transactions types affect the Cash Invested calculations, useful when troubleshooting the Cash Invested calculation. If you want assistance troubleshooting the calculation, contact your Service Team.
•
Cash Invested is increased by the total of: Principal Cost + Brokerage Fees + Other Fees
•
Cash Invested 1 is increased by the Cost Basis of receipts and credits.
•
Cash Invested 2 and 3 are increased by the Market Value of receipts and credits.
•
Cash Invested is unaffected by reinvested income transactions.
•
Cash Invested 1 is reduced by the dollar value of the Return of Principal transaction. Then an average price per share is calculated, multiplied by the total number of shares for the Cash Invested 1 that appears on the report.
•
Cash Invested 2 and 3 are reduced by the dollar value of the return of principal transaction.
•
Cash Invested 1 is reduced by the dollar value of the Amortization (amortization transactions can be either positive or negative). An average price per share is then calculated by taking the total Cash Invested and divide by the total number of shares.
•
Cash Invested 2/ and 3 are increased or decreased by the dollar value of the amortization, depending on whether or not the amortization is increasing or decreasing or decreasing the cost basis.
•
Cash Invested 1 is reduced by the average of the total cash invested per share multiplied by the number of shares sold. Gross proceeds on the sell do not affect the calculation of Cash Invested 1.
(Total cost of shares prior to sale / Number of shares prior to sale) x Number of shares remaining
•
Cash Invested 2 is reduced by the gross proceeds of the sell.
•
Cash Invested 3 is reduced by the gross proceeds of the sell, unless the gross proceeds are greater than
Cash Invested. If the gross proceeds of the sell are greater than Cash Invested 3, the total Cash Invested is zero.
•
Cash Invested 1 is reduced by the average of the total cash invested per share multiplied by the number of shares sold. Gross proceeds on the sell do not affect the calculation of Cash Invested 1.
(Total cost of shares prior to sale / Number of shares prior to sale) x Number of shares sold
•
The Cash Invested 2 is reduced by the Market Value of the transfer or debit.
•
The Cash Invested 3 is reduced by the Market Value of the transfer or debit, but will only reduce the total
Cash Invested number to zero.
Cash Invested Calculation Page 2 of 3

•
250 shares of ABC Stock were bought on 4/30/08 at a cost or $5000, plus $50 of fees.
•
An income of $400 was paid on 5/31/08
•
200 shares were sold on 6/15/08 for $6000.
Cash Invested 1 on 6/1/08 (prior to the sell) is calculated:
(Purchase Price + Fees / # of Shares Held) x Quantity Held
($5000 + $50 / 250) x 250 = $5050
Cash Invested 1 on 6/30/08 (after the sell) is calculated:
Cash Invested 1 is reduced by the average of the total cash invested per share multiplied by the number of shares sold. Gross proceeds on the sell do not affect the calculation of Cash Invested 1.
(Total cost of shares prior to sale / Number of shares prior to sale) x Number of shares sold
($5050 / 250) x 200 = $4040
Cash Invested Prior to Sell: $5050
$5050 - $1010 = $1010
Cash Invested 2 on 6/1/08 (prior to the sell) is calculated:
Purchase price of all buys (including fees) - Net proceeds of all sells
$5000 + $50 = $5050
Cash Invested 2 on 6/30/08 (after the sell) is calculated:
$5000 + $50 - $6000 = -$950
Cash Invested 3 on 6/1/08 (prior to the sell) is calculated:
Purchase price of all buys (including fees) - Net proceeds of all sells
$5000 + $50 = $5050
Cash Invested 3 on 6/30/08 (after the sell) is calculated:
$5000 + $50 - $6000 = $0
For institutional audiences only.
© 2013 Schwab Performance Technologies® (“SPT”). All rights reserved
PortfolioCenter® is a product of Schwab Performance Technologies® (“SPT”). SPT is a subsidiary of The Charles Schwab Corporation separate from its affiliate Charles Schwab & Co., Inc. (“CS&Co”). CS&Co is a registered broker-dealer and member SIPC that provides brokerage services, while SPT licenses software and provides related technology products and services.
Cash Invested Calculation Page 3 of 3