Enter stock purchase and sale information to calculate total return and annualized return.
Frequently Asked Questions
How do I calculate stock return?
Total stock return = (Sell value + Dividends - Buy cost) / Buy cost × 100%. For example, buying 100 shares at $100 each ($10,000 invested) and selling at $150 each ($15,000), plus $5/share dividends ($500), total return = (15,000+500-10,000)/10,000 = 55%.
How is annualized return calculated?
Annualized return = ((Final value / Principal)^(1/years) - 1) × 100%. It allows fair comparison across different holding periods. For example, 55% return over 2 years gives about 24.5% annualized.
How much do dividends impact total returns?
Dividends are a significant component of stock returns. Over the long term, dividend reinvestment can dramatically boost total returns. Historically, about 40% of S&P 500 total returns came from dividends.
How to evaluate stock investment performance?
Evaluate from three angles: 1) Compare against benchmark indices (like S&P 500) over the same period; 2) Calculate risk-adjusted returns (e.g., Sharpe ratio); 3) Consider real returns after taxes and inflation.