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Financial Calculator

Stock Returns Calculator

Calculate comprehensive stock returns including capital gains, dividends, and transaction costs for informed investment decisions.

₹
₹10K₹50L
₹
₹
%

Total Return

₹20.68 K

(20.56%)

Shares Purchased
200
Capital Gain
₹18.68 K
Dividend Income
₹2.00 K
Annualized Return
20.56%

Stock Returns Calculation Formulas

Formulas to calculate stock returns, including absolute returns, CAGR, and dividend-adjusted returns.

1

Absolute Returns

Calculate the absolute percentage return on stock investment.

Absolute Return = ((Current Price - Purchase Price) / Purchase Price) × 100

Example:

Stock bought at ₹100, current price ₹150

((150 - 100) / 100) × 100
= 50%

Variables:

Current Price - Current market price of stock
Purchase Price - Price at which stock was bought
2

CAGR (Compound Annual Growth Rate)

Calculate the annualized return rate for stock investment.

CAGR = ((Current Price / Purchase Price)^(1/n)) - 1

Example:

Stock bought at ₹100, current price ₹200, held for 5 years

((200 / 100)^(1/5)) - 1
= 14.87% CAGR

Variables:

Current Price - Current market price
Purchase Price - Initial purchase price
n - Number of years held

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

Understanding Stock Returns Calculator

Who Should Use This Calculator

This comprehensive calculator is designed for anyone who wants to evaluate complete stock investment performance.

  • Individual Investors: Analyze your stock portfolio performance accurately
  • Equity Traders: Calculate net returns after all transaction costs
  • Financial Advisors: Provide clients with realistic return expectations
  • Beginners: Learn about all components of stock returns

Why Complete Return Calculation Matters

Stock returns involve multiple components that significantly impact your actual profits.

  • Capital Gains: Price appreciation is just one component of returns
  • Dividend Income: Can contribute 2-5% annually in blue-chip stocks
  • Transaction Costs: Brokerage, STT, and taxes can reduce profits significantly

Tax Implications for Indian Investors

Understanding tax impact is crucial for accurate return calculations in India.

  • Short-term Gains: 15% tax on profits from stocks held less than 12 months
  • Long-term Gains: 10% tax on profits above ₹1 lakh per year
  • Dividend Income: Tax-free up to ₹10 lakh, then taxed at slab rates

Key Risks & Considerations

Stock investing involves risks that should be carefully considered before investing.

  • Market Volatility: Stock prices can fluctuate significantly short-term
  • Concentration Risk: Avoid putting all money in single stocks
  • Beginner Alternative: Consider mutual funds/ETFs for diversification

Benefits of Stock Investing

  • Potential for high returns through capital appreciation
  • Regular dividend income from profitable companies
  • Ownership stake in growing businesses
  • Liquidity advantage over other investments

Important Considerations

  • Stock prices are volatile and can fluctuate significantly
  • Transaction costs reduce overall returns
  • Requires research and market knowledge
  • Tax implications on capital gains and dividends

Stock Returns Calculator FAQs

Get answers to common questions about stock return calculations, dividend yields, and investment analysis.

What is the difference between absolute and annualized returns?

Absolute return is the total gain or loss on your investment without considering time. Annualized return adjusts this to show the yearly average return, making it easier to compare investments over different time periods.

How are brokerage and STT calculated?

Brokerage is charged on both buy and sell transactions as a percentage of transaction value. STT (Securities Transaction Tax) is a government levy charged on equity transactions. These costs reduce your overall returns.

Should I include dividend yield in stock return calculations?

Yes, dividend yield is an important component of total stock returns. It represents the annual dividend income as a percentage of the stock price and should be included for a complete return analysis.

What factors affect stock returns?

Stock returns are affected by company performance, market conditions, economic factors, industry trends, and investor sentiment. Transaction costs like brokerage and taxes also impact net returns.