Stock Return Calculator
About Stock Return Calculator
Measuring Stock Returns
A complete stock return includes both price appreciation and dividends received. Focusing only on the price change misses a significant portion of long-term stock market returns – dividends historically account for about 40% of the S&P 500’s total return. This calculator captures the full picture by combining capital gains with dividend income.
The Stock Return Formula
Total Return = ((Ending Price + Dividends Per Share - Beginning Price) / Beginning Price) x 100. For annualized return, use the formula: Annualized = (1 + Total Return)^(1/Years) - 1. Enter the number of shares to see dollar amounts alongside percentages.
How to Use This Calculator
Enter the stock’s purchase price, current or sale price, total dividends received per share during the holding period, number of shares, and holding period in years. The calculator shows total return percentage, annualized return, dollar profit, and a breakdown of gains from price appreciation versus dividends.
Frequently Asked Questions
Should I include reinvested dividends?
If you reinvested dividends to buy more shares, account for those additional shares in your total share count and set dividends to zero since they are already reflected in your larger position.
What is a good stock return?
The historical average annual return of the broad stock market is about 10% before inflation. Returns above this benchmark on a sustained basis indicate strong performance.
Does this account for taxes and commissions?
This calculator shows gross returns before taxes and transaction costs. For a net return, subtract any brokerage fees and estimated tax liability from the profit amount.
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