Total return
Price change alone understates performance for dividend-paying stocks, so dividends are included.
Annualized return (CAGR)
CAGR converts a total return into the steady yearly rate that would produce it, so you can compare holdings owned for different lengths of time.
Example
50 shares bought at $100 and sold at $145 after 3 years, with $150 of dividends, return +48% in total ($2,400) — an annualized 13.96%.
Capital gains tax basics
- Held one year or less: short-term gains are taxed as ordinary income.
- Held more than one year: long-term gains are taxed at 0%, 15% or 20% depending on taxable income, plus 3.8% net investment income tax for high earners.
- Losses can offset gains, and up to $3,000 a year of net losses can offset ordinary income.
Related Equities & Total Return Tools
Measuring total stock returns requires factoring in both capital appreciation and dividend yields. Model passive dividend reinvestment growth with our Dividend Calculator, simulate multi-decade portfolio growth using the Compound Interest Calculator, analyze capital ROI benchmarks via the ROI Calculator, and structure long-term wealth targets with our Investment Calculator.
Frequently asked questions
What's the difference between ROI and CAGR?
ROI is the total percentage gain over the whole period. CAGR spreads it into a yearly rate. A 48% gain over 3 years is a 13.96% CAGR.
Should I include reinvested dividends?
If dividends were reinvested, the extra shares are already in your share count and sale value — don't add those dividends again. Only enter dividends you received as cash.
How do stock splits affect this?
Use split-adjusted numbers: after a 2-for-1 split, double your share count and halve your purchase price. The total cost stays the same.