Stock Return Calculator
What was your total return including dividends? Calculate capital gains, total return with income, annualized CAGR, and benchmark comparison.
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How to Use This Calculator
Tab "Total Return"
Enter your buy price per share, sell price per share, and number of shares. The result shows your total capital gain or loss, percentage return, amount invested, and sale proceeds. Works for any stock, ETF, or fund — in any currency.
Tab "With Dividends"
Add your total dividends received over the holding period and the holding period in years. The calculator combines capital gain and dividend income into a true total return, then annualizes it (CAGR) so you can compare investments held for different durations.
Tab "Benchmark Comparison"
Enter your annualized return, the benchmark annual return (e.g. 8% for a long-run market index average), and the number of years. The calculator shows your annual alpha (outperformance or underperformance) and the cumulative gap compounded over the full period.
The Formulas
Gain = (Sell price − Buy price) × Shares
where Sell price and Buy price are per-share amounts
Percentage return (capital only):
Return % = (Sell − Buy) / Buy × 100
Total return (including dividends):
Total Return % = (Capital gain + Dividends) / (Buy × Shares) × 100
where Dividends = total cash income received over holding period
Annualized return (CAGR):
CAGR = (1 + Total Return as decimal)^(1 / years) − 1
e.g. 45.6% over 2 years → (1.456)^0.5 − 1 = 20.7%/yr
Annual alpha (benchmark comparison):
Alpha = Your annualized return − Benchmark return
Cumulative advantage over N years:
Yours cumulative = (1 + your rate)^N − 1
Benchmark cumulative = (1 + benchmark rate)^N − 1
Cumulative gap = Yours cumulative − Benchmark cumulative
All calculations use standard investment mathematics. No country-specific tax rates, transaction costs, or inflation adjustments are applied. Results are gross pre-tax estimates.
Worked Examples
Example 1 — Capital Gain: 100 shares at $45, sold at $62
An investor buys 100 shares of a company at $45 each and sells them later at $62 each.
Calculation: Gain = ($62 − $45) × 100 = $17 × 100 = $1,700. Return % = $17 / $45 × 100 = 37.8%. A solid capital gain — but the full picture also includes any dividends received.
Example 2 — With Dividends: Same position + $3.50/share over holding period
The same investor held those 100 shares for 2 years and received $3.50 per share in total dividends ($350 total).
Total return = ($1,700 + $350) / $4,500 × 100 = 45.6%. Annualized: (1.456)^(1/2) − 1 = 20.7%/yr. The dividends added 7.8 percentage points to total return — meaningful income that capital-only figures miss.
Example 3 — Benchmark: 12.5%/yr vs S&P 500 average 8%/yr over 3 years
An investor achieved 12.5% annualized over 3 years. How does this compare to an 8% benchmark?
| Metric | Your portfolio | Benchmark (8%/yr) |
|---|---|---|
| Annual return | 12.5% | 8.0% |
| Annual alpha | +4.5% per year | |
| Cumulative (3 yr) | 42.4% | 25.9% |
| Cumulative advantage | +16.5% over 3 years | |
Your 12.5%/yr outperformed the 8%/yr benchmark by 4.5 percentage points per year. Compounded over 3 years, the cumulative advantage grows to +16.5% — because outperformance compounds just like returns do.
Understanding Stock Returns: Key Concepts
Capital Gain vs Total Return
Many investors focus only on share price movement — the capital gain. But for dividend-paying stocks, this misses a substantial portion of actual returns. Historically, dividends have contributed roughly 40% of total stock market returns over the long run. Total return — capital gain plus income — is the correct measure of investment performance.
Annualized Return (CAGR)
The Compound Annual Growth Rate (CAGR) converts any multi-year total return into an equivalent annual rate. This is essential for comparing investments held for different lengths of time. A 45% total return sounds great — but it means very different things held for 2 years (20.7%/yr) versus 10 years (3.8%/yr). Always convert to annualized figures before comparing.
What Counts as a "Good" Return?
Context matters. A common benchmark is the long-run average return of a broad market index: roughly 7–10% per year in real terms for developed market equities, historically. Consistently beating this is difficult even for professional fund managers. The key questions are: (1) Did you beat your chosen benchmark? (2) Were you taking more risk to do so? (3) Is the return sustainable?
Alpha and Benchmark Comparison
Alpha is the excess return above a benchmark. If your portfolio returned 12% and the benchmark returned 8%, your alpha was +4%. Positive alpha over a long period (5–10+ years) is evidence of genuine skill or edge. Over short periods, alpha can easily be random variation. The benchmark you choose matters: compare equity returns to an equity index, not to cash or bonds.
What This Calculator Does Not Include
For simplicity and universality, this calculator does not account for: broker commissions and transaction fees; capital gains tax (which varies by country, holding period, and income level); inflation (real vs nominal returns); currency fluctuations on foreign stocks; reinvestment of dividends (which would increase effective CAGR further). For a complete after-tax, after-fee return, deduct your actual costs from the gross figures shown.
Frequently Asked Questions
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For country-specific calculators that account for local capital gains tax, dividend withholding tax, and investment account rules: