Stock Return Calculator

Understanding Stock Returns

A stock's total return encompasses both capital appreciation (the increase in the stock's price) and income generated from dividends. When evaluating an investment, many beginners only look at the price difference between buying and selling, ignoring the significant impact dividends can have over long periods.

Our Stock Return Calculator factors in all these elements to give you a true picture of your investment's performance, expressing the result as both a flat percentage (ROI) and an annualized rate (CAGR).

Total Return vs. Price Return

Price Return is simply the change in the stock's price over time. If you buy a stock at $100 and it grows to $110, the price return is 10%.

Total Return includes both the price change and any dividends received. If that same stock also paid $5 in dividends while you held it, your total profit is $15, making your total return 15%. Over decades, reinvested dividends often account for a massive portion of the stock market's overall historical return.

How to Use the Stock Return Calculator

1. Buy Price: Enter the price you originally paid per share.
2. Sell / Current Price: Enter the price you sold it for, or the current market price if you still own the shares.
3. Number of Shares: The total amount of shares you hold or traded.
4. Total Dividends Received: The total absolute dollar amount of dividends you received during your holding period.
5. Holding Period: The amount of time you owned the stock, measured in years (e.g., use 1.5 for 18 months).

Why CAGR is Important

The Compound Annual Growth Rate (CAGR) tells you what the stock's return would be if it had grown at a steady, consistent rate every single year. A 50% total return sounds great, but if it took 15 years to achieve, the CAGR is only 2.7%, meaning your money might have grown faster in a simple high-yield savings account or index fund.