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Stock Returns Calculator - Calculate Stock Profit and Returns

Free stock returns calculator to calculate profit, loss, returns percentage, and annualized returns from stock investments. Include dividends for accurate calculations.

Results

Total Investment

₹10,000

Total Returns

₹15,500

Profit/Loss

₹5,500

Annualized Return

24.48%

Return Percentage

55.00%

Holding Period

731 days

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Disclaimer

This calculator is for informational and educational purposes only. It does not constitute financial or investment advice. Consult with a qualified financial advisor before making investment decisions.

What is Stock Returns Calculator - Calculate Stock Profit and Returns?

A Stock Returns Calculator helps you calculate the total returns from your stock investments, including both capital gains (price appreciation) and dividend income. This comprehensive calculator analyzes your stock performance by calculating absolute returns, percentage gains, and annualized returns (CAGR). It's essential for tracking investment performance, comparing stocks, and making informed portfolio decisions. The calculator accounts for purchase price, selling price, quantity, dividends received, and holding period to give you accurate profit calculations.

How to Use This Calculator

  1. Enter the number of shares you bought
  2. Input the purchase price per share
  3. Enter the current or selling price per share
  4. Add total dividends received during holding period (if any)
  5. Specify the holding period in years
  6. View your total returns, profit/loss, and annualized returns (CAGR)
  7. Compare different stocks using percentage returns

Formula Used

Stock Returns Calculation Formulas: 1. Total Investment = Number of Shares × Purchase Price 2. Current Value = Number of Shares × Current Price 3. Capital Gains = Current Value - Total Investment 4. Total Returns = Capital Gains + Dividends Received 5. Absolute Return % = (Total Returns / Total Investment) × 100 6. CAGR (Annualized Return) = [(Final Value / Initial Value)^(1/Years) - 1] × 100 Where: - Final Value = Current Value + Dividends - Initial Value = Total Investment - Years = Holding Period in years Components of Stock Returns: - Capital Appreciation: Price increase from buy to sell - Dividend Income: Cash dividends received during holding - Total Return = Capital Appreciation + Dividends

Example Calculation

Example 1: Stock Returns with Dividends Purchase Details: - Shares Bought: 100 - Purchase Price: ₹500 per share - Total Investment: ₹50,000 Current Details: - Current Price: ₹750 per share - Current Value: ₹75,000 - Dividends Received: ₹5,000 - Holding Period: 3 years Calculation: - Capital Gains: ₹75,000 - ₹50,000 = ₹25,000 - Total Returns: ₹25,000 + ₹5,000 = ₹30,000 - Absolute Return: (₹30,000 / ₹50,000) × 100 = 60% - CAGR: [(₹80,000 / ₹50,000)^(1/3) - 1] × 100 = 16.96% Breakdown: - Capital Appreciation: 50% (₹25,000 / ₹50,000) - Dividend Yield: 10% (₹5,000 / ₹50,000) - Total Return: 60% Example 2: Stock Returns without Dividends Purchase: 50 shares @ ₹1,000 = ₹50,000 Current: 50 shares @ ₹1,400 = ₹70,000 Holding Period: 2 years Returns: - Profit: ₹20,000 - Absolute Return: 40% - CAGR: 18.32%

Frequently Asked Questions

What is the difference between absolute return and CAGR?

Absolute return is the total percentage gain without considering time - if you made 60% profit, that's your absolute return. CAGR (Compound Annual Growth Rate) is the annualized return that factors in time. 60% over 3 years equals 16.96% CAGR. CAGR is better for comparing stocks with different holding periods.

Should I include dividends in stock return calculations?

Yes, absolutely! Dividends are a crucial part of total returns, especially for dividend-paying stocks. Many blue-chip stocks provide 2-4% annual dividend yields. Over long periods, dividends can contribute 30-40% of total returns. Always include dividends for accurate performance measurement.

How do I calculate returns if I bought stocks at different prices?

Calculate your average purchase price: Total Amount Invested ÷ Total Shares Owned. For example, if you bought 50 shares @ ₹100 (₹5,000) and 30 shares @ ₹120 (₹3,600), your average price is ₹8,600 ÷ 80 shares = ₹107.50 per share. Use this average price for return calculations.

What is a good return rate for stock investments?

Historical benchmarks: Sensex/Nifty have delivered 11-12% CAGR over 20+ years. Individual stocks vary widely - 15-20% CAGR is considered excellent, 20%+ is exceptional. Quality large-caps typically give 12-15%, mid-caps 15-20%, small-caps 20%+ but with higher volatility. Compare your returns against market indices.

How are stock returns taxed in India?

Short-term (held < 1 year): 15% STCG tax on gains. Long-term (held > 1 year): 10% LTCG tax on gains above ₹1 lakh per year. Dividends are taxed as per your income tax slab. Use our Capital Gains Tax Calculator for detailed tax estimates.

When should I sell stocks based on returns?

Don't base decisions solely on returns. Consider: 1) Has the fundamental story changed? 2) Are valuations stretched? 3) Do you have better opportunities? 4) Have you reached your target price? 5) Tax implications. Generally, hold quality stocks for 3-5+ years for optimal returns and tax benefits.

How to compare stock returns with mutual fund returns?

Use CAGR for both to compare apples-to-apples. Include dividends for stocks and dividend payouts for mutual funds. Also compare volatility - a stock giving 18% with 40% volatility might be riskier than a fund giving 15% with 20% volatility. Consider risk-adjusted returns using Sharpe ratio for comprehensive comparison.

What if my stock price has fallen? How do I calculate negative returns?

If Current Value < Investment, you have a negative return (loss). Example: Invested ₹50,000, current value ₹40,000 = -20% return. The formula remains same: (Current Value - Investment) / Investment × 100. Negative CAGR indicates your investment declined at that annual rate.

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