Stock Return Calculator
Calculate total return and annualized return on a stock investment.
Results update as you type.
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How it works
A stock return calculator quantifies what an equity investment actually delivered, accounting for both price appreciation and dividend income. Total return is the complete measure: the change in share price plus all cash dividends received, expressed as a percentage of the initial investment. It is the number that matters for comparing investments because it captures all the ways a stock generates value for the holder. Annualized return — also called compound annual growth rate (CAGR) — converts a multi-year total return into an equivalent annual rate, allowing fair comparisons between investments held for different periods. A 50% return over two years is not the same as a 50% return over five years; CAGR translates both into annual terms. For benchmarking, the S&P 500 has delivered approximately 10% annualized total return (including dividends) over long historical periods, though returns in any specific decade have ranged from negative to 18%+. When evaluating your own returns, compare against a relevant benchmark over the same holding period, not just the raw percentage. Also consider taxes: in taxable accounts, capital gains and dividends are taxed when realized, reducing your after-tax return. Using this stock return calculator before and after taxes can reveal the meaningful impact of tax drag, particularly for short-term gains taxed at ordinary income rates.
Total Return = (End Value + Dividends − Start Value) / Start Value × 100; CAGR = (End Value / Start Value)^(1/n) − 1
Start value is shares × purchase price; end value is shares × sale price. Total return adds dividends to the price gain and divides by the initial investment. Annualized return (CAGR) uses the compound annual growth rate formula: end value divided by start value, raised to the power of 1 divided by years, minus 1. CAGR normalizes multi-year returns into an equivalent annual rate for easy comparison.
Source:Standard total-return and CAGR methodology
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter purchase price per share, current / sale price per share and number of shares.
- 2
Adjust the options
Adjust total dividends received and holding period (years) if they apply — sensible defaults are already set.
- 3
Read your result
Total return updates instantly as you type — no button to press.
Frequently asked questions
What is the difference between total return and price return?
Price return measures only the change in share price, ignoring dividends. Total return adds dividends received back into the calculation, giving the true investment result. For dividend-paying stocks, the difference is significant: a stock that pays a 4% annual dividend and grows in price by 6% has a 10% total return but only a 6% price return. Over long periods, dividends have accounted for roughly 40% of the S&P 500's total return, making total return the only meaningful performance metric for most investors.
What is CAGR and why does it matter?
CAGR — Compound Annual Growth Rate — converts any holding period's total return into an equivalent annual rate that assumes steady compounding each year. It matters because it normalizes returns across different time periods: a 100% total return over 10 years is very different from a 100% return over 2 years (7.2% CAGR vs 41.4% CAGR). When fund managers, financial advisors, and investment platforms quote 'annualized returns,' they are reporting CAGR. It enables apples-to-apples comparison and connects naturally to compounding projections.
How do taxes affect stock returns?
In taxable accounts, capital gains are taxed when you sell. Gains on assets held more than one year qualify for the preferential long-term capital gains rate (0%, 15%, or 20% depending on income). Short-term gains (held under one year) are taxed as ordinary income, which can reach 37% for high earners. Qualified dividends are taxed at the long-term rate; non-qualified at ordinary income. Tax drag on a 10% pre-tax return can reduce the after-tax return to 7–8% depending on bracket and jurisdiction. Tax-advantaged accounts (401k, IRA) eliminate this annual drag.
How do I compare my returns to the market?
Compare your return against a relevant index over the same period, using total return (dividends included) for both. The S&P 500 total return index (ticker SPY or ^GSPC) is the standard benchmark for US large-cap equities. Ensure the period matches exactly — including the start and end dates of your investment. Academic research consistently shows that most actively-managed funds and individual stock-pickers underperform a simple index fund over long periods after costs. Knowing your own CAGR vs the benchmark over 5 or 10 years is the most honest evaluation of your stock-picking ability.
What is a realistic expected stock return?
The US stock market (S&P 500) has returned approximately 10% per year on average in nominal terms and about 7% in inflation-adjusted (real) terms over the past century. However, this masks enormous variability: the market delivered near-zero real returns for the two decades starting in 1929 and again starting in 2000. Future returns depend on starting valuations — historically, high price-to-earnings ratios at the time of investment predict lower subsequent 10-year returns. For planning purposes, many financial advisors use 5–8% real returns as a conservative assumption for a diversified equity portfolio.