Stock Return Calculator
Calculate your capital gain, total return, and annualized CAGR on any stock trade. Enter buy price, sell price, shares, and optional dividends for a complete breakdown.
How to Calculate Stock Return
Stock return has two components: capital appreciation (the change in share price) and dividend income (cash paid to shareholders during the holding period). A complete return calculation accounts for both.
- Cost Basis = Buy Price × Shares
- Proceeds = Sell Price × Shares
- Capital Gain = Proceeds − Cost Basis
- Total Return ($) = Capital Gain + Dividends Received
- Total Return (%) = Total Return ($) / Cost Basis × 100
- Annualized Return (CAGR) = (1 + Total Return %)^(1/Years) − 1
Example: $150 → $210 Over 3 Years
Buying 100 shares at $150, selling at $210 after 3 years with $250 in dividends received:
| Metric | Value |
|---|---|
| Cost Basis (100 × $150) | $15,000 |
| Proceeds (100 × $210) | $21,000 |
| Capital Gain | $6,000 |
| Dividend Income | $250 |
| Total Return ($) | $6,250 |
| Total Return (%) | 41.7% |
| Annualized Return (CAGR) | 12.3% / yr |
Why Annualized Return (CAGR) Matters
A 41.7% total return sounds impressive — but is it good? It depends entirely on how long the investment was held. Comparing total returns across different holding periods is misleading. CAGR solves this by converting any return into an equivalent annual rate.
The same 41.7% total return over different holding periods produces very different annualized figures:
| Holding Period | Total Return | CAGR | vs S&P 500 avg (10%) |
|---|---|---|---|
| 1 year | 41.7% | 41.7% | Above |
| 3 years | 41.7% | 12.3% | Above |
| 5 years | 41.7% | 7.2% | Below |
| 10 years | 41.7% | 3.6% | Well below |
Frequently Asked Questions
How do I calculate stock return percentage?
Stock return % = ((Sell Price − Buy Price) × Shares + Dividends) / Cost Basis × 100. This captures both price appreciation and dividend income. The calculator above handles the arithmetic automatically.
What is the difference between total return and annualized return?
Total return is the overall gain across the full holding period. Annualized return (CAGR) converts it to a per-year equivalent, making it possible to fairly compare investments held for different durations.
Should I include dividends in my return calculation?
Yes — dividends are a real part of your return. For S&P 500 stocks, dividends have historically contributed 30–40% of total long-term return. Ignoring them significantly understates how well an investment actually performed.
Does this calculator account for taxes or commissions?
No — results are pre-tax and pre-commission. Subtract brokerage fees from your proceeds to get a more accurate net return. Use the Capital Gains Tax Calculator to estimate the tax owed on your gain.
What is a good annualized stock return?
The S&P 500 has historically returned ~10% annually before inflation, or ~7% after inflation. Individual stocks vary widely. A CAGR above 10% generally outperforms the market average; below 7% may lag inflation-adjusted index performance.