Trending December 2023 # Steps On How To Calculate Investment Income # Suggested January 2024 # Top 12 Popular

You are reading the article Steps On How To Calculate Investment Income updated in December 2023 on the website We hope that the information we have shared is helpful to you. If you find the content interesting and meaningful, please share it with your friends and continue to follow and support us for the latest updates. Suggested January 2024 Steps On How To Calculate Investment Income

Introduction to Investment Income

Start Your Free Investment Banking Course

Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others


As the name suggests, investment income is income generated through investments.

The primary source of revenue for a corporation whose business is to produce revenues through significant investments is income, which is recorded in “revenue from operations” in the financial statements. Such income typically comes from secondary sources of income in regular circumstances.

A secondary source of revenue means the focus is not on generating this income. Such income is automatically generated without placing much effort.

The primary objective of investment income is to beat the time value of money along with general inflation prevailing in the market. Say you invested $ 100,000 with shares. The dividend income you receive will also compensate for the time value. Suppose you deposited the same amount in a fixed deposit with any commercial bank; the interest earned in such case beats both time value and inflation.

How to Calculate Investment Income?

Step 1: The first step is to collate the information related to all your investments. Such information can easily be traced through hard papers, emails, or messages. The information such as rate of interest, date of payment, amount of investment, date of investment & maturity, etc., is mentioned in such sources of information. All you need to do is to structure the information in an appropriate manner.

Step 2: The next step is to process the available information through an Excel sheet. Specify the formulas for the calculation of investment income to date.

Step 3: Using step 2, calculate the income amount. The next step is to calculate the rate of return earned. The rate of return is the average return for all investments, holding period return for certain investments or capital gain returns, etc.

Step 4: You can decide whether to withdraw or reinvest the return amount. If the amount of return is not that significant, it is always suggested to reinvest the income into the same or another financial instrument.

Example of Investment Income

An investor is cash rich & has invested in many financial instruments. He has provided the following information about his investments. He is curious to know the return he earns as of date for each investment & the overall return of the entire investment.


Quantity Rate ($)

Stock A  7,500  65  4,87,500

Time deposits with Bank




Fixed Income Bonds A  50,000  95  47,50,000

Stock B  10,500  500  52,50,000

Stock C  8,500  16  1,36,000

Fixed Income Bonds B  28,400  75  21,30,000

Stock D  2,015  60  1,20,900

Mutual Fund A  19,500  165  32,17,500

Mutual Fund B  19,500  205  39,97,500

Stock E  1,560  650  10,14,000

Total     3,37,53,400


Average Return

Particulars Category Amount of Investment ($) (A) Quantity (B) Market Rate as on date($) (‘C) Market Value ($) (D = B*C) Return ($) (E = D-A) Return (%) E/A*100

Stock A Equity  4,87,500 7,500  74 5,55,000  67,500 14%

Time deposits with Bank Cash Equivalents  1,50,000 – – 1,62,000  12,000 8%

Land Real Estates 1,25,00,000 – –  1,65,00,000 40,00,000 32%

Fixed Income Bonds A Fixed Income  47,50,000 50,000  100 50,00,000 2,50,000 5%

Stock B Equity  52,50,000 10,500  400 42,00,000  -10,50,000 -20%

Stock C Equity  1,36,000 8,500  20 1,70,000  34,000 25%

Fixed Income Bonds B Fixed Income  21,30,000 28,400  83 23,43,000 2,13,000 10%

Stock D Equity  1,20,900 2,015  68 1,37,020  16,120 13%

Mutual Fund A Mutual Funds  32,17,500 19,500  168 32,76,000  58,500 2%

Mutual Fund B Mutual Funds  39,97,500 19,500  210 40,95,000  97,500 2%

Stock E Equity  10,14,000 1,560  580 9,04,800  -1,09,200 -11%


3,37,53,400      3,73,42,820 35,89,420

The average return here is $ 3589420 / 33753400 = 10.63%


The investor has earned good returns in stocks. The market rates are considered for computing the unrealized gain of the investor.

The investor has earned lower but sufficient returns in bonds and mutual funds.

The unrealized value of land is considered only for valuation & the investor will not choose to sell instantly.

Types of Investment Income

Following are the types of investment income are:

Interest Income: This is the basic income generated when you place your money in some bonds, certificate of deposit, or any other financial instrument bearing interest. Investors can either withdraw the realized gain or can reinvest the amount back into the same source of investment. The interest income is normally periodic & consistent. The investor further has to pay tax on such interest income. In exceptional cases, the government allows an exemption for interest income.

Dividend Income: You hold a share of a company whenever to invest in stocks. The company earns profits after tax for its shareholders. The company has the option either to distribute a small part of such earnings or to retain that part as well. Well, it depends on the projections of the company. If a company has future plans of expansion & it can earn more than the normal return through such expansion, it will not distribute the said amount as a dividend.

On the other hand, it may distribute the same to shareholders. Such income is normally consistent in nature. Dividends are normally paid annually.

Capital Gains Income: Dividend income is when the company distributes its part of earnings. Capital gain is when you sell the holding shares in the market. The difference between the buy price & sell price is called a capital gain. It can be manifold. The quantum of capital gain depends on the period of hold & the attributes of the stock. Quality stocks rise manifold in 2-3 years. However, the investor is required to pay taxes such as capital gain. If the stocks are sold within 12 months from the date of purchase, it is a short-term capital gain; otherwise, it is a long-term capital gain. Short-term capital gain attracts a higher rate of tax than long-term capital gain.

Returns from Bonds: When you purchase a bond, you have lent your money to the seller or issuer of the bond for a certain period of time. The easiest way of earning money is to hold the bond till its maturity & to enjoy capital gain as well as in-between cash flows from the bond. However, you may choose to sell the stock in the middle of the maturity period observing the higher selling price.


It is a secondary source of revenue or, one can say, “passive income”.

Such income does not need separate attention & it grows with time.

It helps create wealth even if you focus on the active source of earning.

When you have huge cash flows, investing is always suggested rather than holding the cash flows.

Such income becomes the backbone at the time of retirement benefits. A person will not have rich cashflows at the last stages of life. Thus, investment income from bonds, FDs, mutual funds, stocks, etc., will help him to earn at least survival revenue to manage his expenses.

A person becomes financially independent when there are lots of investments made.

Properly managing investment income will help a person channel the expenses through investment income.

The income from stocks is volatile in nature. It may or may not provide you with a specific amount of return in case of the downside of the entire market.

The management of the portfolio is necessary if one wants to play safe. If 100% of the investment is made only in stock, your portfolio depicts the exact return & risk as per the very dangerous market. It may even wipe out the investments.

Incomplete knowledge is always dangerous. The person needs to have knowledge of investment in various streams.

Investment income is not tax-free. The person has to pay taxes such as income. In fewer cases, there are exceptions.


Some extra is always better. So, when you are cash-rich, you should invest in stocks, bonds, time deposits, etc., to keep the money blocked in some instruments that generate revenue. A running inflow of money is always attractive & satisfying at the same time.

Recommended Articles

You're reading Steps On How To Calculate Investment Income

How To Calculate Mean (Examples, Calculator)

Mean Formula (Table of Contents)

Start Your Free Investment Banking Course

Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

Mean Formula

The mean, also known as the arithmetic average, is a statistical measure used to determine the center of a dataset. It is calculated by summing all the data points and dividing the sum by the number of data points in the set. The mean plays a fundamental role in data analysis and is a common method for measuring central tendency.

A formula for Mean is as below:

Mean = Sum of All Data Points / Number of Data Points.

In the Assumed Mean method, which is not commonly used, one selects a random value from the dataset and assumes it to be mean. Then, one calculates the deviation of the data points from this value to determine the mean.

Mean = Assumed Mean + (Sum of All Deviations / Number of Data Points)

Examples of Mean Formula (With Excel Template)

Let’s take an example to understand the calculation of the Mean formula in a better manner.

You can download this Mean Template here – Mean Template

Example #1

Let’s say you have a data set with 10 data points, and we want to calculate the mean for that.

Data set: {4,6,8,9,22,83,98,45,87,10}


Mean = Sum of All Data Points / Number of Data Points

Mean = (4+6+8+9+22+83+98+45+87+10) / 10

Mean = 372 / 10

Mean = 37.2

Let’s use the Assumed Mean method to find the mean in the same example.

Let’s assume that the mean for the given data set is 40. So Deviations will be calculated as:

For 1st data point, 4 – 40 = -36

Similarly, We have to calculate the deviation for all the data points.

Mean = Assumed Mean + (Sum of All Deviations / Number of Data Points)

Mean = 40 + (-36 -34-32-31-18+43+58+5+47-30) / 10

Mean = 40 + (-28) / 10

Mean = 40 + (-2.8)

Mean = 37.2

Example #2

Let us take IBM stock and we will take its historical prices from the last 10 months and will calculate the annual return for 10 months.


Mean = (3.74% + 1.07% +4.34% + (-23.66)% + 7.66% + (-7.36)% + 18.25% + 2.76% + 1.48% + 0.00%) / 10

Mean = 8.28% / 10

Mean = 0.83%

So if you see here, in the last 10 months, IBM’s return has fluctuated very much.

Overall, the average return in the last 10 months is only 0.83%.


Mean is a simple average of the data points in a data set and helps us understand the average point. But there are certain limitations to using mean. The mean value is easily distorted by extreme values/outliers. These extreme values can be very small or very large, which can distort the mean. For example: Let’s say we have returns of stock for the last 5 years given by 5%, 2%, 1%, 5%, -30%. Mean for these values is -3.4% ((5+2+1+5-30)/5). So although the stock has provided a positive return for the first 4 years, we have an average negative mean of 3.4%. Similarly, if we have a project for which we analyze the cash flow for the next 5 years. Let’s say the cash flows are: -100, -100, -100, -100, +1000.

The mean is 600 / 5 = 120. Although we have a positive mean, we are only getting money in the last year of the project, and it can happen that if we incorporate the time value of money, this project will not look as lucrative as it is now.

Relevance and Uses of Mean Formula

Mean is very simple yet one of the crucial elements of statistics. It is the basic foundation of statistical analysis of data. It is very easy to calculate and easy to understand also. If we have data set with data points scattered everywhere, the mean helps us see that data point’s average. For example: If a stock X has returns from the last 5 years as 20%, -10%, 3%, -7%, 30%. If you see, all the years have different returns. The mean for this is 7.2% ((20-10+3-7+30)/5). So we can now simply say that, on average, the stock has given us a yearly return of 7.2%.

But if we see mean in a silo, it has relatively less significance because of the flaws discussed above and is more of a theoretical number. So we should use the mean value carefully and not analyze the data based only on the mean.

Mean Formula Calculator

You can use the following Mean Calculator

Sum of All Data Points Number of Data Points Mean Formula   Mean Formula = Sum of All Data Points = Number of Data Points


= 0


Recommended Articles

This is a guide to Mean Formula. Here we have discussed how to calculate the Mean, along with practical examples. We also provide a Mean calculator with a downloadable Excel template. You may also look at the following articles to learn more –

How To Calculate Total Assets? With Examples

Definition of Total Assets

Total assets (T.A) can be defined as sum total of the money value of all monetary and non-monetary economic resources owned, managed, and controlled by an organization which is either having current economic value or is capable of generating future economic benefits for the organization either within a short period of time or in the long run.

Start Your Free Investment Banking Course

Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others


Assets, in simple terms, are defined as anything and everything a business owns that have value, can be converted to cash, and is categorized as current or non-current assets. Total asset is the sum of all current and non-current assets equal to the sum of total liabilities and stockholder’s equity on the other side of the balance sheet. T.A. disclose in the balance sheet as per the applicable GAAP laws of the land. For example, these may be listed on a balance sheet in the order of their liquidity. The valuation of each asset is recorded as the asset’s purchase value. When all the assets are classified and listed in the appropriate order on the balance sheet, the sum of their valuation is combined to derive the T.A. value.

The formula of Total Asset

Total Assets = Liability + Owners Equity


Total Assets = Liabilities + Owners Equity + Net Profit – Drawings


Total Assets = Non-Current Assets + CURRENT ASSETS


Current Assets: Current assets are Those assets that can be converted into cash or cash and cash equivalents within one year of acquisition. Examples: cash, cash, cash equivalent, accounts receivable, marketable securities, inventories, and prepaid expenses.

Non-Current Assets: Non-current assets generate economic benefits from a period greater than one year from the acquisition or the balance sheet date. Examples: fixed assets, plant, and machinery, furniture, land and building, intangible assets, goodwill, etc.

How to Calculate Total Assets?

To calculate T.A following steps must be followed –

Identify Your Assets: The first step to calculating T.A. is the identification of all assets. One must know whether the item will generate any economic benefits to the organization; if yes, then list such items. Identification and valuation of intangible assets may be a problem. Intangible assets will also form part of T.A.

List Your Asset: The foremost step to be taken is to list the values of any current asset like cash, inventory, money owed to you, and fixed assets like buildings and machines. Also, the value of long term investments such as stocks and bonds should be considered.

Valuation: Next step is to identify the value of the asset. This may be either the asset’s cost or the present value of sum total of future economic benefits that any asset will generate. Depending upon the use, certain other valuations like net realizable value, historical cost, net replacement value, or future economic value may be applied for valuation.

Add up Your Assets: Add all the assets to find the final amount.

Check the Basic Accounting Formula: One can cross verify the sum total of assets with the help of the accounting equation, which says T.A. will always be equal to sum total of total liabilities + owner’s equity. Where equity is the owner’s fund of a company, such as capital or shareholders fund, and liability is the company’s debts that need to be paid off, such as loans, operation expenses, salaries, etc.

Examples of Total Assets

Following are the examples given below:

Example #1

From the following details, ascertain the T.A value: –



Land 50,00,000

Machinery 80,00,000

Accumulated Depreciation on Machine 30,00,000

Inventory 60,00,000

Furniture 40,00,000

Accumulated Depreciation on Furniture 10,00,000

Cash 10,00,000

Bank 40,00,000


Total Assets = Land + (Machinery – Accumulate Depreciation on Machinery) +inventory + (furniture – Accumulated Depreciation on Furniture) + Cash +bank

Total Assets = 50,00,000 + (80,00,000 – 30,00,000) + 60,00,000 + (40,00,000 – 10,00,000) + 10,00,000 + 40,00,000

Total Assets = 50,00,000 + 50,00,000 + 60,00,000 + 30,00,000 + 10,00,000 + 40,00,000

Total Assets =$2,40,00,000

Hence Total Assets of Amazon Inc. are $2,40,00,000.

Example #2

Identify and determine the T.A value from the following items

Particulars Amount ($)

Land 1,00,000

Machinery 2,00,000

Cash 50,000

Warranty claim provision 20,000

Debentures issued 20,000




Asset -Yes/No


Land Yes –

Machinery Yes –

Cash Yes –

Warranty claim provision No It’s a contingent liability that may be paid in future

Debentures issued No It’s a long-term liability disclosed on the liability side

Total Assets is calculated as

Therefore, Total Assets = Land + Machinery + Cash

Total Assets = 2,00,000+1,00,000+50,000

Total Assets = 3,50,000

Balance Sheet

Sample Balance Sheet (Asset side)


Current FY Fig($)

Previous FY Fig($)

Non-Current Assets-    

Fixed Assets-    

Land, Buildings, furniture, etc.

Non-Current Investments

Deferred Tax Assets

Long-Term Loans & Advances

Current Assets

Inventories, Accounts Receivable, etc

(Note: -Above B/s does not contain all items that must be disclosed. It’s just a sample for understanding)

Total Assets vs Current Assets

T.A. is the sum total of all the current and non-current assets and forms the asset side of the balance sheet. In contrast, current assets are the assets that are part of total assets and capable of converting, utilizing, and realizing into cash or cash equivalent within one year of acquisition or balance sheet date. Current assets are the most liquid assets and are easily realizable at any point in time and include cash and cash equivalent, inventory, accounts receivable, etc. At the same time, T.A. includes all current and other non-current assets like land and building, plant and machinery, equipment, vehicles, goodwill, etc.


Total assets produce positive economic value for a financial entity, whether tangible or intangible.

Total assets represent the company’s own value and can be converted into cash whenever required.

It shows the capacity of a profit-oriented enterprise that helps contribute directly or indirectly to future net cash flows and in providing services.

One can measure profit generation performance by comparing it with benchmark accounting ratios like total asset margin ratio, net profit to T.A. ratio, Total assets turnover ratio, etc.


Some of the limitations are given below:

Identification and valuation of intangible assets is a challenge and might affect T. A valuation if these are not evaluated properly.

The balance sheet discloses assets at a historical cost which does not reveal the actual realizable value in certain cases.

Assets like employees who do not possess monetary value cannot form part of the total asset but play a great role in running a business.


Asset plays a crucial role in studying the financial world. An entity should try to utilize its assets in the best possible manner. A firm’s health is decided based on various parameters in which T.A. play a crucial part. It helps predict the profit a firm generates, determine its efficiency level, and make action plans accordingly for meeting our targets.

Recommended Articles

How To Buy Openai Stock: Exploring Investment Options In Ai

As of June 2023, OpenAI remains a private company and has not announced any plans for an initial public offering (IPO) to become a publicly listed company. This means that buying OpenAI stock directly is not currently possible. However, there are several alternative ways to gain exposure to OpenAI and the general AI trend. In this article, we will explore various investment options that can provide indirect exposure to OpenAI and the broader AI industry.

See More: Can You Buy ChatGPT Stock?

One option to gain exposure to OpenAI is by investing in pre-IPO shares through private share marketplaces. These marketplaces allow investors to buy shares of private companies before they go public. However, it’s important to note that investing in pre-IPO shares can be restricted to certain accredited investors and may involve higher risks compared to publicly traded stocks.

Another way to gain exposure to OpenAI and the AI industry is through AI-focused exchange-traded funds (ETFs). These funds typically invest in a basket of companies involved in AI development and implementation. By investing in AI-focused ETFs, you can diversify your investment across multiple companies within the AI sector, including those related to OpenAI.

EquityZen is a platform that allows investors to buy and sell shares of private companies, including OpenAI, before they go public. This platform provides an opportunity to invest in promising private companies like OpenAI and potentially benefit from their future growth. However, it’s crucial to conduct thorough research and understand the risks associated with investing in private companies.

Apart from OpenAI, there are several other investment opportunities within the broader AI technology sector. Here are some options worth considering:

Investors can directly invest in individual stocks of companies that develop AI technologies. Some of the top AI stocks to consider include Meta Platforms Inc. (META), chúng tôi (AI), and Salesforce (CRM). These companies are at the forefront of AI innovation and can provide exposure to the growing AI market.

Similar to the previous section, investing in AI-focused ETFs allows you to diversify your investments across multiple companies involved in AI development and implementation. ETFs like Global X Robotics & Artificial Intelligence ETF (BOTZ) and Mirae Asset Global Investments offer exposure to a broad range of AI-related companies, providing a balanced investment approach.

Many companies across various industries incorporate AI technology into their operations. By investing in these companies, you indirectly gain exposure to AI technology. For example, Amazon utilizes AI in numerous aspects of its business, from customer recommendations to its cloud-based services. Investing in such companies allows you to benefit from the growth and adoption of AI across different sectors.

Venture capital firms specialize in investing in early-stage AI companies. By investing in venture capital funds, you can gain exposure to promising AI startups that have the potential for significant growth investing in venture capital funds allows you to tap into the expertise of experienced investors who actively seek out and support promising AI startups. While venture capital investments can be riskier and less liquid compared to traditional stocks, they can also offer substantial returns if successful.

Also Check: 4 Steps to Investing Your Money Using AI

Several major technology companies are heavily invested in AI research and development. Investing in these tech giants can provide exposure to AI technology. Companies like Alphabet Inc. (GOOGL), Apple Inc. (AAPL), and NVIDIA Corporation (NVDA) have dedicated significant resources to AI and are well-positioned to benefit from its continued growth.

As the demand for AI continues to rise, infrastructure and service providers play a crucial role in supporting AI development and deployment. Companies like Intel Corporation (INTC), Advanced Micro Devices, Inc. (AMD), and Amazon Web Services (AWS) offer AI-related hardware, software, and cloud computing services. Investing in these companies can provide indirect exposure to the AI industry.

A: No, OpenAI is currently a private company and has not gone public. As of now, direct investment in OpenAI stock is not possible.

A: While direct investment in OpenAI is not available, you can explore alternative options such as investing in pre-IPO shares through private share marketplaces, investing in AI-focused ETFs, or investing in companies that partner with OpenAI.

A: Yes, there are several AI-focused ETFs available in the market. These ETFs invest in a diversified portfolio of companies involved in AI technology and development.

A: Investing in AI-related companies carries the typical risks associated with investing in the stock market, such as market volatility and company-specific risks. Additionally, the AI industry is still evolving, and there may be regulatory and ethical considerations that could impact the sector in the future.

Share this:



Like this:




Superfetch On Windows 11: How To Disable It In 3 Steps

Superfetch on Windows 11: How to Disable it in 3 Steps Learn to get rid of this feature for good




However, it’s found to hog the resources, and many consider disabling SuperFetch in Windows 11.

There are three ways you can do that, using the Services app, an elevated Command Prompt, and the Registry Editor.

Also, find out if you should disable SuperFetch and the cases when the feature doesn’t prove much worthy.

There are various services running on the PC dealing with a bunch of activities. One of the critical ones is Superfetch that’s often found to hog the system resources. As a result, several users have been looking for ways to disable Superfetch in Windows 11.

The feature is meant to boost the performance and reduce the loading time for apps but can act quite the contrary by slowing down the Windows. This is generally noticed on PCs with low specifications and with an HDD (Hard Disk Drive) installed.

So, we decided to dedicate this guide to help you understand the feature, and list all the ways to disable Superfetch in Windows 11.

What is Superfetch?

It will only take up the unused part of the memory and if your computer runs out of it, Superfetch will clear some of the loaded apps to free up RAM.

This gives you a basic idea of its functioning. However, several users have experienced considerably poor performance with Superfetch enabled, and want to disable it in Windows 11. If you too are facing the same problem, here are the three ways you can do it.

How do I turn off Superfetch in Windows 11? 1. Use the Services app

This is probably the simplest method to disable Superfetch in Windows 11. It’s easy to execute and doesn’t require any intricate commands or modifying the dreaded Registry.

However, if you want to make the change quicker, head to the next method.

2. Use Command Prompt

1. Press Windows + S to launch the Search menu.

Expert tip:

5. Now, paste the following command and hit Enter to stop the service: net.exe stop sysmain

6. Next, execute the following command to disable Superfetch from loading at startup: sc config sysmain start=disabled

For those who prefer using the command line to execute tasks, there is the option to disable Superfetch on Windows 11 PCs via Command Prompt.

What you need to do is input two commands: one for disabling the service, and one for preventing it from loading at Startup.

3. Use the Registry Editor

Many prefer using the Registry to make changes to the computer, and the steps listed here will help you use it to disable Superfetch in Windows 11.

Though, remember to be cautious during the process and not make any changes other than the ones listed here.

Should I disable Superfetch in Windows 11?

Amongst the many methods to boost Windows 11 performance, disabling Superfetch is generally mentioned somewhere near the top. And the best part, doing so carries no risk.

Also, there are cases when the feature doesn’t offer any considerable benefits. For instance, if you have Windows 11 stored on an SSD, the loading time itself is low, and Superfetch doesn’t play much of a role here.

But, if you notice that the RAM consistently runs full or the Disk usage is high, disabling Superfetch might do the trick. So, disable the feature and check if it works. In case it does, keep it turned off, otherwise, revert the changes.

By now, you know all the ways to disable Superfetch in Windows 11. And, if your PC has been running slow, this would help improve the performance.

Also, discover the best Windows 11 settings for improved performance. These would help ensure optimal resource allocation and consumption.

Still experiencing issues?

Was this page helpful?


Start a conversation

3 Steps To Appear Offline On Facebook Messenger

On Facebook Messenger, you’ll be able to see whether someone is offline or online.

However, the person’s activity status needs to be enabled.

Similar to WhatsApp, you’re given the ability to disable your activity status on Facebook Messenger.

If the person’s activity status is disabled, they will always remain offline.

In other words, you won’t be able to tell whether they are active or not.

If you want to appear offline on Facebook Messenger, read on to find out how.

How to appear offline on Facebook Messenger

To appear offline on Facebook Messenger, first tap on your profile picture.

Then, navigate to “Active Status” and turn off the “Show when you’re active” option.

After you’ve turned off the “Show when you’re active” option, your active status will no longer be shown.

Before turning off the “Show when you’re active” option, your Facebook friends will be able to see a green dot on your profile picture.

If you turned it off, the green dot will no longer be visible on your profile.

However, keep in mind that you won’t be able to see your friends’ activity status as well.

If you want to see your friends’ activity status, you have to enable the “Show when you’re active” option.

That being said, below is a step-by-step guide on how you can appear offline on Facebook messenger by turning off your active status.

Step 1: Tap on your profile picture

Open Facebook Messenger and tap on your profile picture on the top navigation bar.

The first step is to tap on your profile picture on the Messenger app.

To begin with, open the Messenger app on your mobile device.

You can also use Messenger on a desktop, but the user interface will be a little different.

The screenshots in this guide are taken on the mobile version of Messenger, and not the desktop version.

Hence, it’s better to use the Messenger app rather than the desktop version of it when following this guide.

Once you’ve opened Messenger, you’ll land on your chats.

Next, tap on your profile picture on the top navigation bar.

If you’re using Messenger on a desktop, tap on the three dots next to your profile picture instead.

This will open a navigation menu with several options.

Proceed to the next step to learn how to navigate to the active status setting.

Step 2: Tap on “Active Status”

Tap on the “Active Status” option.

On the navigation menu, you’ll see multiple options including “Dark mode”, “Switch account”, “Active Status”, and more.

“Dark mode” allows you to switch the appearance of the app to a dark theme.

“Switch account” allows you to switch between Facebook accounts.

Lastly, you can turn on or turn off your activity status via the “Active Status” option.

Tap on the “Active Status” option to go to the active status setting.

This option will allow you to appear offline on Facebook if you disable it.

If you’re using Messenger on a desktop, tapping on the three dots will open a different navigation menu.

Then, tap on “Turn Off Active Status” to go to the active status setting.

Proceed to the last step to learn how to turn off your active status to appear offline on Messenger.

Step 3: Turn off the “Show when you’re active” option

After you’ve tapped on the “Active Status” option, you’ll land on the “Active Status” setting.

On the setting, you’ll see a “Show when you’re active” option.

The “Show when you’re active” option is enabled by default.

If the option is enabled, your friends and contacts will be able to see when you’re active.

On the other hand, if the option is disabled, your friends and contacts will not be able to see when you’re active.

Turn off the “Show when you’re active” option by tapping on the switch.

After you’ve tapped on the switch, there’ll be a pop-up message confirming whether you want to turn off your Active Status.

Tap on “Turn off” to turn off your Active Status.

Once your Active Status is turned off, you will appear offline to your friends and contacts on Facebook Messenger.

However, you won’t be able to see your friends’ or contacts’ Active Status.

This setting is similar to hiding your “Last Seen” status on WhatsApp.

You’ve successfully learned how to appear offline on Facebook Messenger!

Can you appear offline on Messenger but still see messages?

Yes, you can appear offline on Messenger but still see messages.

Appearing offline on Messenger will hide your Active Status from your friends and contacts on Facebook.

In other words, they won’t be able to see that you’re online.

However, you will still be able to see messages that people send you.

In addition, you will still be able to see your existing chats.

How do I hide myself on Facebook Messenger?

To hide yourself on Facebook messenger, you need to turn off your Active Status.

After you’ve turned off your Active Status, your contacts and friends will not be able to see that you’re online.

However, you won’t be able to see whether they are online as well.

Typically, whenever you’re online on Facebook, a green dot will appear on your profile picture.

Now that you’ve turned off your Active Status, the green dot will not be shown on your profile picture even if you’re online on Facebook Messenger.


Appearing offline on Facebook Messenger is a great way to mitigate stalkers.

It also prevents someone from thinking that you’re deliberately ignoring their messages.

If you typically take a long time to reply to someone’s messages, appearing offline is ideal.

The only setback is that you won’t be able to see your contacts’ and friends’ Active Status.

Further Reading

How to Send Files on Messenger

How to Change Your Profile Picture on Messenger

What Does “Other Viewers” Mean on Facebook Story?

Lim How Wei is the founder of Followchain. Feel free to follow him on Instagram.

Update the detailed information about Steps On How To Calculate Investment Income on the website. We hope the article's content will meet your needs, and we will regularly update the information to provide you with the fastest and most accurate information. Have a great day!