Out Of Pocket Definition

The "Out Of Pocket" (OOP) calculation method reports figures based on how
much money has come out of your pocket. These figures are useful in
understanding your overall break even point. The OOP figures may differ
from the various tax related calculation methods due to distributions. For
example, when you reinvest a distribution you tax cost basis in that investment
increases, but your OOP cost basis stays the same, since you didn't receive any
money back into your pocket.

Your OOP cost basis is the amount of money spent on purchases out of your
pocket (not including reinvested distribution), minus any redemptions, and minus
any received distributed distributions. There are a variety of OOP related
figures available, such as OOP basis, OOP gain, and
OOP percent gain. This
calculation method is used in the "Cost" based graphs, the custom and
portfolio performance reports, as well as the Portfolio Editor. When
determining the OOP cost on only remaining shares, the FIFO accounting method is
used.

Special Note for Transfer In/Out Transactions: When calculating the out
of pocket cost for "transfer" type transactions there are two calculation
options. You can either use the original OOP cost of the transferred
shares, or the market value on the date of the transfer. This option can
be set in the General Preferences - Other Dialog.

### See Also

%Gain

Custom Report

Portfolio Performance Report

Portfolio Cost - Value Graph

Portfolio Gain Graph

Cost - Value Graph

Gain Graph

Cost - Price Graph

First In First Out Definition

Average Cost Definition

Specific Lot Definition