Stock Return Calculator
Calculate your total return on a stock investment including capital gains and dividends.
Total Return
60.0 %
Total Return vs Years Held
Formula
## Stock Return Calculation ### Total Return **Total Return = (Capital Gain + Dividends) / Cost Basis x 100%** ### Annualized Return (CAGR) **Annualized Return = [(Ending Value + Dividends) / Cost Basis]^(1/Years) - 1** The annualized return normalizes your return to a per-year basis, making it easy to compare investments held for different periods. ### Why Include Dividends Dividends often account for 30-40% of total stock market returns over long periods. Ignoring them understates your actual investment performance.
Exemplo Resolvido
Bought 100 shares at $50, now worth $75 each, received $500 in dividends over 3 years.
- 01Cost basis = 100 x $50 = $5,000
- 02Current value = 100 x $75 = $7,500
- 03Capital gain = $7,500 - $5,000 = $2,500
- 04Total return = ($2,500 + $500) / $5,000 = 60%
- 05Annualized = ($8,000 / $5,000)^(1/3) - 1 = 16.96%
Perguntas Frequentes
What is the difference between total return and price return?
Price return only measures the change in share price. Total return includes dividends and other distributions. Total return gives a more complete picture of investment performance.
How do I calculate return on multiple purchases?
For multiple purchases at different prices, use the total cost basis (sum of all purchase amounts) and total current value. For precise tracking, consider using a dollar-weighted return method.
What is a good annualized stock return?
The S&P 500 has historically returned about 10% annually (7% after inflation). Individual stock returns vary widely. Returns above 15% annualized are considered excellent over multi-year periods.
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