Stock Return Calculator — 公式
## 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.
### 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.
计算示例
Bought 100 shares at $50, now worth $75 each, received $500 in dividends over 3 years.
- Cost basis = 100 x $50 = $5,000
- Current value = 100 x $75 = $7,500
- Capital gain = $7,500 - $5,000 = $2,500
- Total return = ($2,500 + $500) / $5,000 = 60%
- Annualized = ($8,000 / $5,000)^(1/3) - 1 = 16.96%