Stock Return Calculator
See total profit, total return and annualised return on a holding, with dividends included rather than ignored.
Measure exact-date stock returns after dividends and entered transaction costs.
—
Educational measurement only. Benchmark and inflation paths are mathematical comparisons, not market-price histories or forecasts. Taxes, reinvested dividends and corporate actions are excluded unless reflected in the entered values.
Total return versus annualised return
Two numbers describe the same investment, and confusing them leads to bad comparisons.
Total return is the entire gain across the whole holding period. Annualised return converts that into a per-year rate, so an investment held for four years can be compared fairly against one held for one.
A 76% total return sounds impressive. Spread over four years it is about 15% a year — good, but a different claim entirely.
The formulas
Initial investment = Purchase price × Number of shares
Final value = (Selling price × Number of shares) + Dividends received
Total profit = Final value − Initial investment
Total return % = (Total profit ÷ Initial investment) × 100
Annualised return % = [ (Final value ÷ Initial investment) ^ (1 ÷ Years) − 1 ] × 100
A worked example
You bought 300 shares at ₹250, they now trade at ₹410, you have received ₹9,000 in dividends, and you have held for 4 years.
- Initial investment: ₹250 × 300 = ₹75,000
- Value of shares: ₹410 × 300 = ₹1,23,000
- Final value including dividends: ₹1,23,000 + ₹9,000 = ₹1,32,000
- Total profit: ₹57,000
- Total return: (57,000 ÷ 75,000) × 100 = 76.00%
- Annualised return: 15.18%
Note that the dividends add roughly 12 percentage points to the total return. Ignoring them, as many people do when they check a price chart, understates what the investment actually delivered.
What this excludes
- Brokerage, STT and statutory charges on both purchase and sale
- Capital gains tax on the profit
- Tax on dividends already received
- Inflation. A 15% nominal return with 6% inflation is roughly 9% in real terms — the number that determines what your money can actually buy
A note on tax
Gains on listed Indian equity are treated differently depending on how long you held the shares. The holding period threshold, the short-term rate, the long-term rate and the annual exemption were all revised in the July 2024 budget, and further changes are possible.
Rather than quote figures that may be out of date by the time you read this, check the current rates on the Income Tax Department’s site or with a chartered accountant before planning around a post-tax number.
Related: Stock Average Calculator · CAGR Calculator
Frequently asked questions
Should dividends be included in investment return?
Yes, if you want the true picture. A price chart shows only capital appreciation. Total return includes both, and for high-dividend stocks the difference over a decade is substantial.
Why is annualised return lower than total return?
Because it spreads the gain across the years it took to earn. Only when the holding period is exactly one year do the two figures coincide.
Can I use this calculator for a loss?
Yes. Enter a selling price below your purchase price and the profit, total return and annualised return will all be negative. Losses are shown in red.
What if I bought the stock in several tranches?
Work out your weighted average purchase price first using the stock average calculator, then enter that figure as your purchase price here.