Stock Calculator Return

Stock Investment Return Calculator

Use this calculator to determine the total return on your stock investment, factoring in purchase price, selling price, number of shares, and any associated commissions or dividends received.

Understanding Your Stock Investment Returns

Investing in stocks can be a powerful way to grow wealth, but understanding how to calculate your returns is crucial for evaluating performance and making informed decisions. A stock return calculator helps you quantify the profitability of your investments by considering all relevant factors, from initial purchase to final sale, including any additional costs or benefits.

What is Stock Return?

Stock return refers to the profit or loss generated from an investment in a company's shares over a specific period. It's typically expressed as a percentage of the initial investment. The total return on a stock investment comprises two main components:

1. Capital Gains/Losses: This is the profit or loss realized from the difference between the selling price and the purchase price of the shares. If you sell shares for more than you bought them, you have a capital gain; if you sell for less, it's a capital loss.
2. Dividends: Many companies distribute a portion of their earnings to shareholders in the form of dividends. These payments contribute directly to your overall return and are an important factor, especially for long-term investors.

Key Factors in Calculating Stock Return

To accurately calculate your stock return, several inputs are necessary:

• Initial Share Price: The price per share at which you originally bought the stock.
• Number of Shares: The total quantity of shares you purchased.
• Selling Share Price: The price per share at which you sold (or would sell) the stock.
• Purchase Commission: Fees paid to your broker when you buy shares. These reduce your net investment.
• Sale Commission: Fees paid to your broker when you sell shares. These reduce your net proceeds.
• Dividends Received: The total amount of dividends you received from holding the stock during your investment period.

How the Calculator Works

Our Stock Investment Return Calculator simplifies the process by taking all these factors into account. Here's the breakdown of the calculations:

1. Total Purchase Cost: This is calculated by multiplying your Initial Share Price by the Number of Shares, then adding any Purchase Commissions. This gives you the true total amount you invested.
2. Total Sale Proceeds: This is determined by multiplying your Selling Share Price by the Number of Shares, then subtracting any Sale Commissions. This represents the actual cash you received from selling.
3. Net Profit/Loss: This is the core of your return. It's calculated by subtracting the Total Purchase Cost from the Total Sale Proceeds and then adding any Dividends Received. A positive number indicates a profit, while a negative number indicates a loss.
4. Return on Investment (ROI) Percentage: This is the most common way to express investment performance. It's calculated by dividing your Net Profit/Loss by your Total Purchase Cost and then multiplying by 100 to get a percentage. This allows for easy comparison across different investments.

Example Calculation

Let's walk through an example to illustrate how the calculator works:

• Initial Share Price: $50.00
• Number of Shares: 100
• Selling Share Price: $65.00
• Purchase Commission: $5.00
• Sale Commission: $5.00
• Dividends Received: $10.00

Using these figures:

• Total Purchase Cost: ($50.00 * 100) + $5.00 = $5,000.00 + $5.00 = $5,005.00
• Total Sale Proceeds: ($65.00 * 100) – $5.00 = $6,500.00 – $5.00 = $6,495.00
• Net Profit/Loss: $6,495.00 – $5,005.00 + $10.00 = $1,500.00
• Return on Investment (ROI): ($1,500.00 / $5,005.00) * 100 = 29.97%

As you can see, even small commissions and dividends can impact your overall return. This calculator provides a clear, comprehensive view of your stock investment performance.