What is Stock Return & Capital Gain Calculator and How Do You Calculate It?
Total Return (%) = ((Sale Value - Buy Value + Dividends - Commissions) / Buy Value) * 100This standardized equation forms the quantitative foundation used by chartered financial analysts (CFA), investment bankers, and corporate treasurers under GAAP and IFRS reporting frameworks.
Formula Components & Operational Definitions
Buy PriceInitial price paid per share.
Sell PriceExecution price at liquidation.
SharesQuantity of stock shares traded.
DividendsCumulative cash dividends collected per share.
Step-by-Step Real-World Worked Example
An investor buys 100 shares of Reliance at Rs 1,500, receives Rs 50/share in dividends, and sells at Rs 2,200 with Rs 100 brokerage fee.
Strategic Takeaway: Total shareholder return accounts for both price appreciation and cash distributions.
Industry Benchmark Comparison Table
Total stock return measures the aggregate economic value delivered to equity investors.
Beats benchmark stock index averages.
Executive Sector Note: Remember to account for capital gains taxes (Short Term vs Long Term Capital Gains tax rates).
Analytical Comparison & Critical Limitations
- Does not calculate securities transaction tax (STT) unless entered into the commission field.
Frequently Asked Questions
What is the formula for stock capital gain?
Capital Gain = (Selling Price − Purchase Price) × Number of Shares.