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Stock ROI Calculator
Calculate total return on a stock investment including capital gains and dividends received. See annualised (CAGR) return for any holding period.
Formula
Total return and CAGR formula
Capital Gain
(Current Price − Purchase Price) × Shares
Total Return
Capital Gain + Total Dividends Received
Total Return %
Total Return ÷ (Purchase Price × Shares) × 100
CAGR
(1 + Total Return%)^(1÷Years) − 1
Worked Example
Given
100 shares · Buy $50 · Current $80 · Dividends received $600 · Held 3 years
- Capital Gain
- ($80 − $50) × 100 = $3,000
- Total Return
- $3,000 + $600 = $3,600
- Total Return %
- $3,600 ÷ $5,000 × 100 = 72%
- CAGR
- (1.72)^(1/3) − 1 = ≈ 19.8% p.a.
Frequently Asked Questions
- What is included in total return?
- Total return includes capital gain (price appreciation) plus all dividends received during the holding period. It does not deduct taxes or brokerage commissions. Total return is the most complete measure of investment performance because it captures both income and growth.
- What is CAGR?
- CAGR (Compound Annual Growth Rate) is the annualised rate of return, calculated as (Final Value ÷ Initial Value)^(1 ÷ Years) − 1. It expresses what constant annual growth rate would produce the same total return over the same period. CAGR is the standard for comparing investments held for different time periods.
- Should I include dividends in the return calculation?
- Yes, always. Dividends can account for 30–50% of long-run total return for dividend-paying stocks. Omitting dividends significantly understates investment performance. The S&P 500 has historically returned about 7% per year in price appreciation, but total return (with dividends reinvested) is closer to 10% per year.
- Does this calculator include fees?
- No. Brokerage commissions, management fees, and taxes are not deducted. For a net return calculation, use the Stock Profit Calculator (which includes buy and sell fees) and then subtract taxes using the Capital Gains Tax Calculator.