Stock Return Calculator
Calculate your stock investment profit or loss including trading commissions and dividends. Get detailed breakdowns of your returns.
Stock Return Calculator
Calculate your stock investment profit or loss including commissions and dividends.
Stock Return includes price appreciation/depreciation, minus trading costs, plus any dividends received during the holding period.
Cost Basis is your average cost per share including commissions. This is important for tax calculations.
Note: This calculator does not account for taxes. Capital gains taxes may apply based on your holding period and jurisdiction.
Understanding Stock Returns
Stock returns consist of two main components: capital gains (or losses) from price changes and income from dividends. Understanding both is crucial for evaluating your investment performance.
Capital Gains
The profit from selling a stock at a higher price than you bought it. Calculated as: (Sell Price - Buy Price) × Shares
Short-term: Held less than 1 year (taxed as income)
Long-term: Held more than 1 year (lower tax rate)
Dividend Income
Cash payments made by companies to shareholders from profits. Can be received quarterly, annually, or at other intervals.
Qualified: Lower tax rate (held 60+ days)
Non-qualified: Taxed as ordinary income
Example Calculation
Scenario: You bought 100 shares at $50 each, paid $10 commission. Sold at $65 per share with $10 commission, and received $150 in dividends.
Total Cost: (100 × $50) + $10 = $5,010
Sale Proceeds: (100 × $65) - $10 = $6,490
Net Return: $6,490 - $5,010 + $150 = $1,630
Percent Return: ($1,630 / $5,010) × 100 = +32.53%
Key Terms
| Term | Definition |
|---|---|
| Cost Basis | Total amount paid for shares including commissions. Used for tax calculations. |
| Break-even Price | The price at which selling would result in zero profit/loss after costs. |
| Gross Return | Return before deducting trading costs and fees. |
| Net Return | Actual profit/loss after all costs, commissions, and dividends. |
| Total Return | Capital gains plus dividend income, expressed as a percentage. |
Trading Cost Impact
Trading costs can significantly impact returns, especially for frequent traders or small positions. Here's how different commission levels affect a $5,000 trade:
$0
Zero commission
0% impact on returns
$10
Per trade ($20 round trip)
0.4% impact on returns
$50
Per trade ($100 round trip)
2% impact on returns
Tips for Better Returns
- 1.Minimize trading costs: Use commission-free brokers when possible.
- 2.Consider tax implications: Hold for over 1 year for lower capital gains rates.
- 3.Reinvest dividends: Compound your returns through DRIP programs.
- 4.Track your cost basis: Important for accurate tax reporting.
- 5.Don't ignore dividends: They can contribute significantly to total returns.