1. What is Stock Return Percentage?

The Stock Return Percentage measures the total percentage gain or loss on an investment, accounting for both price changes and dividends received during the holding period.

2. How Does the Calculator Work?

The calculator uses the stock return formula:

Where:

• \( \text{End Price} \) — Current or selling price of the stock
• \( \text{Start Price} \) — Original purchase price
• \( \text{Dividends} \) — Total dividends received during holding period

Explanation: The formula calculates the total return by considering both capital gains (price appreciation) and income (dividends), then expresses it as a percentage of the original investment.

3. Importance of Return Calculation

Details: Calculating total return percentage allows investors to accurately compare performance across different investments and time periods, accounting for all sources of return.

4. Using the Calculator

Tips: Enter all values in USD. Start and end prices must be positive numbers. If no dividends were received, enter 0.

5. Frequently Asked Questions (FAQ)

Q1: Should I include dividend reinvestment?
A: This calculator uses simple dividends. For precise calculations including dividend reinvestment, use a more comprehensive calculator.

Q2: How does this differ from annualized return?
A: This shows total return for the period. Annualized return adjusts for the holding period length to enable year-to-year comparisons.

Q3: What about stock splits?
A: For accurate calculations after splits, adjust all historical prices proportionally before entering them.

Q4: Can I use this for other investments?
A: Yes, the same formula works for any investment where you can measure price changes and income received.

Q5: How do taxes affect the return?
A: This shows pre-tax return. Actual after-tax returns depend on your tax situation and holding period.