Stock Returns Calculator

Calculate returns on your stock investments including capital gains and dividends. Analyze performance, compare scenarios, and make informed equity investment decisions.

Stock Investment Details

Stock Symbol/Name AAPL
Enter stock symbol (AAPL, MSFT, TSLA) or company name
Investment Type Single Purchase
Purchase Date Jan 15, 2023
Number of Shares 100
Purchase Price per Share $150
$
Current Date Today
Current Price per Share $175
$
Annual Dividend Yield 1.5%
%
Average dividend yield for the stock
Brokerage Fees $20
$
Current Investment Value
$17,500
Total Cost
$15,020
$2,480
Total Returns
16.5%
Return %
15.8%
Annualized Return

Returns Breakdown

Capital Gains
$2,500
Dividend Income
$225
Brokerage & Fees
-$20
Net Returns
$2,480

Yearly Performance

Year Share Price Dividend/Share Total Return Annual Return

Scenario Comparison

Optimistic

+25% CAGR

Future Value: $21,850

Gains: $6,830

Moderate

+15% CAGR

Future Value: $17,500

Gains: $2,480

Conservative

+8% CAGR

Future Value: $14,520

Gains: -$500

Investment Insight

Your stock investment has generated 16.5% returns in 1.2 years. Consider holding for long-term capital gains tax benefits if planning to hold over 1 year.

About Stock Returns Calculator

The Stock Returns Calculator helps you analyze the performance of your stock investments. Calculate capital gains, dividend income, annualized returns, and understand the tax implications of your equity investments.

Components of Stock Returns

Capital Gains

Profit from the increase in stock price from purchase to sale. Calculated as (Selling Price - Purchase Price) × Number of Shares.

Dividend Income

Regular payments made by companies to shareholders from profits. Calculated as Dividend per Share × Number of Shares.

Total Return

Combined return from capital gains and dividends. Provides a complete picture of investment performance.

CAGR

Compound Annual Growth Rate measures the annualized return that would be required for an investment to grow from its beginning to ending value.

How Stock Returns Are Calculated

Capital Gains Formula

Capital Gains = (Current Price - Purchase Price) × Number of Shares
Example: ($175 - $150) × 100 = $2,500

Dividend Income Formula

Dividend Income = Annual Dividend Yield × Average Investment × Holding Years
Example: 1.5% × $16,250 × 1.2 = $225

CAGR Formula

CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) - 1
Example: ($17,500 ÷ $15,020)^(1 ÷ 1.2) - 1 = 15.8%

Total Return Formula

Total Return = Capital Gains + Dividend Income - Fees
Example: $2,500 + $225 - $20 = $2,480

Tax Implications for Stock Investments

Short Term Capital Gains (STCG)

  • Holding Period: Less than 1 year
  • Tax Rate: 15% (for equity shares)
  • Calculation: Added to income and taxed as per slab (for non-equity)

Long Term Capital Gains (LTCG)

  • Holding Period: More than 1 year
  • Tax Rate: 10% over ₹1 lakh exemption (for equity)
  • Indexation: Available for non-equity held over 1-3 years

Dividend Income Tax

  • For Shareholders: Taxable as per income slab
  • TDS: 10% if dividend exceeds ₹5,000
  • For Companies: DDT abolished, now taxable in hands of investors

Factors Affecting Stock Returns

  • Company Performance: Revenue growth, profitability, and management quality
  • Industry Trends: Sector performance and competitive landscape
  • Economic Conditions: Interest rates, inflation, and GDP growth
  • Market Sentiment: Investor psychology and market trends
  • Global Events: Geopolitical events and international trade
  • Regulatory Environment: Government policies and regulations
  • Currency Fluctuations: For multinational companies
Note: Stock market investments are subject to market risks. Past performance is not indicative of future results. The calculator provides estimates based on your inputs. Always conduct thorough research or consult with a financial advisor before making investment decisions.

What is the difference between absolute return and CAGR?

Absolute return shows total percentage gain over the entire holding period. CAGR (Compound Annual Growth Rate) shows the annualized growth rate, which is more useful for comparing investments with different time periods.

How are dividends taxed?

Dividend income is taxable as per your income tax slab. TDS of 10% is deducted if dividend income exceeds ₹5,000 in a financial year.

What is DRIP and how does it affect returns?

DRIP (Dividend Reinvestment Plan) automatically reinvests dividends to purchase more shares. This enhances compounding and can significantly increase long-term returns.

How do brokerage fees impact returns?

Brokerage fees reduce your net returns. Frequent trading with high brokerage can significantly eat into profits, especially for small investments.

What is a good annual return for stocks?

Historically, stock markets have returned 8-12% annually over the long term. However, returns can vary significantly year to year and depend on the specific stocks and market conditions.

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