Stock Return Calculator: Your Total & Annualized Gains

Is this stock trade a good return?

On the defaults — 100 shares bought at $50.00 and sold at $65.00 with $120.00 of dividends over 3 years — the initial investment is $5,000.00, the price gain is $1,500.00, the total return is $1,620.00, 32.40% total, 9.81% a year. A stock’s total return has two parts: the price gain (sell price minus buy price, times the shares) and the dividends received over the holding period. Dividends are real return, and reinvested dividends drive a large share of long-run stock returns. The annualized return (CAGR) smooths a multi-year gain into a per-year rate so holdings of different lengths can be compared. With no dividends the same trade returns $1,500.00, 30.00% total, 9.14% a year; held 10 years the same 32.40% total is only 2.85% a year.

Five things about the model are worth stating plainly. First, the initial investment is the buy price times the shares — $50.00 × 100 = $5,000.00. Second, the price gain is the sell price minus the buy price, times the shares — ($65.00 − $50.00) × 100 = $1,500.00. Third, the total return is the price gain plus the dividends — $1,500.00 + $120.00 = $1,620.00. Fourth, the total return percentage is the total return divided by the initial investment — $1,620.00 ÷ $5,000.00 × 100 = 32.40%. And fifth, the annualized return compounds: the end value is $65.00 × 100 + $120.00 = $6,620.00, so ($6,620.00 ÷ $5,000.00)^(1 ÷ 3) − 1 = 9.81% a year — not 32.40% ÷ 3 = 10.80%; all listed in Accuracy & limitations.

The worked example, line by line

Setup: 100 shares, buy price $50.00, sell price $65.00, dividends received $120.00, holding period 3 years.

Line 1 — the initial investment. The initial investment is $50.00 × 100 = $5,000.00.

Line 2 — the price gain. The price gain is ($65.00 − $50.00) × 100 = $15.00 × 100 = $1,500.00.

Line 3 — the total return. The total return is $1,500.00 + $120.00 = $1,620.00.

Line 4 — the total return percentage. The total return percentage is $1,620.00 ÷ $5,000.00 × 100 = 32.40%.

Line 5 — the annualized return. The end value is $65.00 × 100 + $120.00 = $6,620.00, and the annualized return is ($6,620.00 ÷ $5,000.00)^(1 ÷ 3) − 1 = 9.81% a year.

Every branch, checked

200 shares: Initial investment $10,000.00, price gain $3,000.00, total return $3,120.00 (31.20%), annualized return 9.47% — With 200 shares the price gain doubles to $3,000.00 and the total return is $3,120.00 — but the percentage falls to 31.20% because the same $120.00 of dividends spreads over twice the investment: the fixed dividend is a smaller slice of a bigger holding.

Sell price $80.00: Initial investment $5,000.00, price gain $3,000.00, total return $3,120.00 (62.40%), annualized return 17.54% — Selling at $80.00 instead of $65.00 turns the price gain into $3,000.00 and the total return into $3,120.00 — 62.40% total, 17.54% a year.

Sell price $40.00: Initial investment $5,000.00, price gain −$1,000.00, total return −$880.00 (−17.60%), annualized return −6.25% — Selling at $40.00 loses $1,000.00 on price, and even the $120.00 of dividends cannot save the trade: the total return is −$880.00, −17.60% total, −6.25% a year.

No dividends ($0.00): Initial investment $5,000.00, price gain $1,500.00, total return $1,500.00 (30.00%), annualized return 9.14% — With no dividends the same trade returns $1,500.00 — 30.00% total, 9.14% a year. The $120.00 of dividends is worth 2.40 percentage points of total return and 0.67 points a year.

Holding period 1 year: Initial investment $5,000.00, price gain $1,500.00, total return $1,620.00 (32.40%), annualized return 32.40% — Over one year the annualized return equals the total return: 32.40%. Annualizing only changes the number when the holding lasts more than a year.

Holding period 10 years: Initial investment $5,000.00, price gain $1,500.00, total return $1,620.00 (32.40%), annualized return 2.85% — Held 10 years the same 32.40% total is only 2.85% a year — compounding spreads the same gain over a much longer period.

Buy $25.00, sell $40.00, 200 shares, $300.00 dividends, 5 years: Initial investment $5,000.00, price gain $3,000.00, total return $3,300.00 (66.00%), annualized return 10.67% — Buying at $25.00 and selling at $40.00 with 200 shares and $300.00 of dividends over 5 years gives a $3,000.00 price gain and a $3,300.00 total return — 66.00% total, 10.67% a year.

The reverses, worked backwards

Smallest sell price for the total return to reach $2,000.00: The smallest sell price for the total return to reach $2,000.00 is $68.80 (exact 68.8000). At the displayed $68.80 the figures are Initial investment $5,000.00, price gain $1,880.00, total return $2,000.00 (40.00%), annualized return 11.87%. At the lower neighbor the figures are Initial investment $5,000.00, price gain $1,879.00, total return $1,999.00 (39.98%), annualized return 11.86%. At $68.80 the price gain is $1,880.00 and the total return is exactly $2,000.00 — 40.00% total, 11.87% a year. At $68.79 the total is $1,999.00 (39.98%) — one cent of price short.

Smallest whole number of shares for the total return to reach $1,000.00: The smallest whole number of shares for the total return to reach $1,000.00 is 59 shares (exact 59). At the displayed 59 shares the figures are Initial investment $2,950.00, price gain $885.00, total return $1,005.00 (34.07%), annualized return 10.27%. At the lower neighbor the figures are Initial investment $2,900.00, price gain $870.00, total return $990.00 (34.14%), annualized return 10.29%. At 59 shares the total return is $1,005.00 — 34.07% total, 10.27% a year. At 58 shares the total is only $990.00 — below $1,000. Note the percentage at 58 shares is 34.14%, higher than at 59: the fixed $120.00 of dividends spreads over fewer shares, so the percentage does not rise with the share count — this reverse is on total dollars, not on the percentage.

Smallest dividends received for the total return to reach $2,000.00: The smallest dividends received for the total return to reach $2,000.00 is $500.00 (exact 500.0000). At the displayed $500.00 the figures are Initial investment $5,000.00, price gain $1,500.00, total return $2,000.00 (40.00%), annualized return 11.87%. At the lower neighbor the figures are Initial investment $5,000.00, price gain $1,500.00, total return $1,999.99 (40.00%), annualized return 11.87%. At $500.00 of dividends the total return is exactly $2,000.00 — 40.00% total. At $499.99 the total is $1,999.99 — below $2,000 — even though the percentage still displays as 40.00% (39.9998% rounds to 40.00%), so this reverse is framed on dollars, never on the percentage.

Largest whole number of years for the annualized return to stay at 10% or more: The largest whole number of years for the annualized return to stay at 10% or more is 2 years (exact 2). At the displayed 2 years the figures are Initial investment $5,000.00, price gain $1,500.00, total return $1,620.00 (32.40%), annualized return 15.07%. At the lower neighbor the figures are Initial investment $5,000.00, price gain $1,500.00, total return $1,620.00 (32.40%), annualized return 32.40%. At 2 years the annualized return is 15.07% — still above 10%. At 3 years it is 9.81% — below 10%. The annualized return falls as the holding period grows, so 2 years is the largest whole number of years that keeps it at 10% or more.

Smallest sell price for the total return percentage to reach 50.00%: The smallest sell price for the total return percentage to reach 50.00% is $73.80 (exact 73.8000). At the displayed $73.80 the figures are Initial investment $5,000.00, price gain $2,380.00, total return $2,500.00 (50.00%), annualized return 14.47%. At the lower neighbor the figures are Initial investment $5,000.00, price gain $2,379.00, total return $2,499.00 (49.98%), annualized return 14.47%. At $73.80 the total return is $2,500.00 — exactly 50.00% total, 14.47% a year. At $73.79 the total is $2,499.00 (49.98%) — below 50%.

Number of shares for a total return of exactly $3,000.00: The number of shares for a total return of exactly $3,000.00 is 192 shares (exact 192). At the displayed 192 shares the figures are Initial investment $9,600.00, price gain $2,880.00, total return $3,000.00 (31.25%), annualized return 9.49%. At the lower neighbor the figures are Initial investment $9,550.00, price gain $2,865.00, total return $2,985.00 (31.26%), annualized return 9.49%. At 192 shares the price gain is $2,880.00 and the total return is exactly $3,000.00 — 31.25% total, 9.49% a year. At 191 shares the total is $2,985.00; at 193 shares it is $3,015.00.

What the defaults assume

The defaults are a $50.00 buy price, a $65.00 sell price, 100 shares, $120.00 of dividends received and a 3-year holding period — Initial investment $5,000.00, price gain $1,500.00, total return $1,620.00 (32.40%), annualized return 9.81%. With a 200 shares, Initial investment $10,000.00, price gain $3,000.00, total return $3,120.00 (31.20%), annualized return 9.47% — With 200 shares the price gain doubles to $3,000.00 and the total return is $3,120.00 — but the percentage falls to 31.20% because the same $120.00 of dividends spreads over twice the investment: the fixed dividend is a smaller slice of a bigger holding. With a sell price $80.00, Initial investment $5,000.00, price gain $3,000.00, total return $3,120.00 (62.40%), annualized return 17.54% — Selling at $80.00 instead of $65.00 turns the price gain into $3,000.00 and the total return into $3,120.00 — 62.40% total, 17.54% a year. With a sell price $40.00, Initial investment $5,000.00, price gain −$1,000.00, total return −$880.00 (−17.60%), annualized return −6.25% — Selling at $40.00 loses $1,000.00 on price, and even the $120.00 of dividends cannot save the trade: the total return is −$880.00, −17.60% total, −6.25% a year. With a no dividends ($0.00), Initial investment $5,000.00, price gain $1,500.00, total return $1,500.00 (30.00%), annualized return 9.14% — With no dividends the same trade returns $1,500.00 — 30.00% total, 9.14% a year. The $120.00 of dividends is worth 2.40 percentage points of total return and 0.67 points a year. With a holding period 1 year, Initial investment $5,000.00, price gain $1,500.00, total return $1,620.00 (32.40%), annualized return 32.40% — Over one year the annualized return equals the total return: 32.40%. Annualizing only changes the number when the holding lasts more than a year. With a holding period 10 years, Initial investment $5,000.00, price gain $1,500.00, total return $1,620.00 (32.40%), annualized return 2.85% — Held 10 years the same 32.40% total is only 2.85% a year — compounding spreads the same gain over a much longer period. With a buy $25.00, sell $40.00, 200 shares, $300.00 dividends, 5 years, Initial investment $5,000.00, price gain $3,000.00, total return $3,300.00 (66.00%), annualized return 10.67% — Buying at $25.00 and selling at $40.00 with 200 shares and $300.00 of dividends over 5 years gives a $3,000.00 price gain and a $3,300.00 total return — 66.00% total, 10.67% a year.With a 0 shares, $0.00 dividends, Initial investment $0.00, price gain $0.00, total return $0.00 (0.00%), annualized return 0.00% — No shares, no return: the initial investment, the price gain and the total return are all $0.00. With a sell price = buy price ($50.00), $120.00 dividends, Initial investment $5,000.00, price gain $0.00, total return $120.00 (2.40%), annualized return 0.79% — Dividends alone are the whole return: the price gain is $0.00, the total return is $120.00 — 2.40% total, 0.79% a year. With a sell price = buy price ($50.00), $0.00 dividends, Initial investment $5,000.00, price gain $0.00, total return $0.00 (0.00%), annualized return 0.00% — Nothing moves and nothing is paid: every figure is $0.00. With a holding period 1 year (same trade), Initial investment $5,000.00, price gain $1,500.00, total return $1,620.00 (32.40%), annualized return 32.40% — Over one year the annualized return equals the total return: 32.40%. With a buy $500.00, sell $800.00, 1,000 shares, $5,000.00 dividends, 10 years, Initial investment $500,000.00, price gain $300,000.00, total return $305,000.00 (61.00%), annualized return 4.88% — A big trade over a long time: the initial investment is $500,000.00, the price gain is $300,000.00 and the total return is $305,000.00 — 61.00% total, but only 4.88% a year over 10 years. With a sell price $0.00 (total loss), Initial investment $5,000.00, price gain −$5,000.00, total return −$4,880.00 (−97.60%), annualized return −71.16% — The shares are worth nothing, so the price gain is −$5,000.00 and the total return is −$4,880.00 — −97.60% total, −71.16% a year. The dividends soften the loss by $120.00. A holding period of 0 years is an input error — the holding period must be above 0, and the calculator shows an error, not a result.

Output · formula · meaning

Who uses this

• The investor checking a $50.00-to-$65.00 trade: they learn 100 shares with $120.00 of dividends return $1,620.00 — 32.40% total, 9.81% a year — and they check the $80.00 branch to see the return reach 62.40%.
• The holder wondering whether dividends matter: they learn the $120.00 of dividends is worth 2.40 points of total return — and they check the no-dividends branch to see the same trade return 30.00% instead of 32.40%.
• The investor comparing holding periods: they learn the same 32.40% total is 32.40% a year over 1 year but only 2.85% a year over 10 years — and they check the 2-year reverse to see the annualized return stay above 10% only up to 2 years.
• The trader sizing a position: they learn 192 shares is the count for a $3,000.00 total return — and they check the 59-share reverse to see the smallest count for a $1,000.00 total return.

Accuracy & limitations

The math is first-principles: the initial investment is the buy price times the shares, rounded to cents; the price gain is the sell price minus the buy price, times the shares; the total return is the price gain plus the dividends received; the total return percentage is the total return divided by the initial investment; the annualized return is the end value divided by the initial investment, raised to one over the years, minus one — each rounded to cents (or two decimals) half-up. What the model cannot do is predict your actual return: it does not include income tax — the capital-gains tax tool covers the tax side, so your after-tax return is lower; it does not include broker fees or commissions; dividends are entered as a total, so a per-share dividend must be multiplied by the shares first; the annualized return smooths the whole holding into one steady rate, so it hides the year-to-year swings; and the buy and sell prices are the prices you enter, not a forecast. Use it to compare holdings on equal footing — then check the tax bill and the fees before you sell.

Frequently asked questions