Stock Return Calculator
Calculate your stock investment returns including capital gains, dividends, and total ROI.
Enter Your Information
Results
About the Stock Return Calculator
Stock returns combine price appreciation and dividends. The right metric depends on the question: total return (price + dividends reinvested), price return only, annualized return (CAGR), or compound annual growth rate over a multi-year period. This page covers all four and when to use each.
The Formula
Total return = ((End price + Total dividends per share) − Start price) ÷ Start price. CAGR (compound annual growth rate) = (End value ÷ Start value)^(1 ÷ years) − 1.
Worked Example
Buy 100 shares of XYZ at $50 ($5,000). 5 years later, price is $80 and you collected $6/share in dividends ($600). Total return = ($8,000 + $600 − $5,000) ÷ $5,000 = 72%. CAGR = (8,600/5,000)^(1/5) − 1 ≈ 11.4% annually.
Total return vs price return
Looking only at price moves understates stock returns by 1.5-2% annually for dividend-paying stocks. The S&P 500 dividend yield averages ~2% — over 30 years, reinvested dividends roughly double your wealth versus price-only.
Why CAGR matters more than simple average
Two stocks both 'averaged' 10%. Stock A: +50%, -30%, +50%, -30%, +50% over 5 years = ends at $1.84 from $1. Stock B: steady 10% per year = $1.61. The 'volatility drag' on Stock A is real. CAGR captures the actual ending wealth — use it.
Realised vs unrealised gains
Unrealised gains are paper. Until you sell, they can disappear. Long-term investors generally accept this and stay invested. Short-term focus on locking in profits often leads to selling too early and missing the largest gains.
Common Mistakes
- Comparing returns over different periods. A 'top performing' fund over 1 year is meaningless; 10-year CAGR is more useful.
- Forgetting taxes on dividends and short-term capital gains.
- Confusing simple-average returns with CAGR.
Frequently Asked Questions
How do I compare two stocks?
Compare CAGR over the same multi-year period (5+ years). Single-year comparisons are noisy.
Are dividends taxed twice?
Qualified dividends are taxed at long-term capital gains rates (0/15/20%) — the same as if you sold appreciated stock. They are not 'double-taxed' from your perspective, though there is corporate-level tax.
This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making significant financial decisions.