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Stock Return Calculator

Calculate total return and CAGR on stock investments

Stock Return Calculator

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About This Calculator

A stock return calculator helps you evaluate investment performance by computing total return, annualized return, and the impact of dividends over a holding period. Total return includes both capital appreciation (price change) and dividends received, expressed as a percentage: Total Return = (Ending Value − Beginning Value + Dividends) / Beginning Value × 100. Annualized return converts total return into an equivalent yearly rate using the formula: Annualized Return = (1 + Total Return)^(1/years) − 1, allowing fair comparison of investments held for different time periods. For example, a stock bought at $50 that is now worth $85 after 5 years with $10 in cumulative dividends has a total return of 90% and an annualized return of about 13.6%. This tool is valuable for evaluating individual stock performance, comparing stock returns against benchmarks like the S&P 500, assessing portfolio performance, and making informed decisions about whether to hold or reallocate investments. Understanding both total and annualized returns gives you a clear picture of how your money is actually performing.

How to Use

  1. 1
    Enter trade details
    Input the buy price, sell price, number of shares, and holding period.
  2. 2
    Add dividends
    Optionally include dividend payments received during the holding period.
  3. 3
    See your return
    View total profit, percentage return, and annualized performance.

Frequently Asked Questions

Q. What is the difference between total return and annualized return?
Total return measures your complete gain or loss over the entire holding period as one number (e.g., "I made 90%"). Annualized return converts that into a yearly equivalent rate, allowing fair comparison of investments held for different lengths of time. A 90% total return over 5 years equals about a 13.6% annualized return.
Q. What is a good annual return on stocks?
The S&P 500 has historically returned about 10% per year before inflation (roughly 7% after inflation) over long periods. Individual years vary wildly — from -37% in 2008 to +31% in 2019. A "good" return depends on the risk taken and the benchmark, but consistently beating 10% annualized over decades is exceptional.
Q. Should I include dividends in my return calculation?
Absolutely. Dividends often account for a significant portion of total returns. Historically, dividends have contributed about 40% of the S&P 500's total return. Ignoring dividends drastically understates your actual investment performance. Always compare investments using total return, not just price appreciation.
Q. How do I calculate return on investment (ROI)?
ROI = (Current Value − Amount Invested + Income Received) / Amount Invested × 100. If you invested $5,000 and your position is now worth $6,500 with $200 in dividends, your ROI is ($6,500 − $5,000 + $200) / $5,000 × 100 = 34%. For comparing investments of different durations, convert to annualized return.

Disclaimer: Results are for informational purposes only and do not constitute professional advice. Always consult qualified professionals for important decisions.

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