Stock Return Calculator: Measure True Investment Performance
Our Stock Return Calculator shows total return, CAGR, and dividend impact. Compare reinvested vs cash dividends.
What is Total Return?
Capital gains + dividends. True measure of performance.
Key Metrics
- Total Return: % gain over period
- Annualized Return: Average per year
- CAGR: Smoothed annual growth
- Dividend Yield: Income component
Reinvest vs Hold
Reinvesting dividends compounds growth significantly.
Example: $50 → $75, 100 shares, 5 yrs, $2.50 div
- Buy & Hold: $5,000 gain + $1,250 div = 125% return
- Reinvest: ~140% return (CAGR 19.1%)
Formulas
Total Return = (End Value + Dividends - Initial) / Initial × 100
CAGR = (End / Start)^(1/years) - 1
Why It Matters
- Compare stocks fairly
- Track portfolio health
- Dividend reinvestment boosts long-term wealth
Pro Tips
- Always include dividends
- Use CAGR for multi-year
- Compare with CAGR
Limitations
- Assumes constant dividend
- No taxes or fees
- Price path not modeled
Conclusion
Measure real returns. Use our Stock Return Calculator to optimize. Explore more in Finance.