Stock Total Return Calculator

Total Return Formula:

\[ \text{Total Return} = \frac{\text{End} - \text{Begin} + \text{Dividends}}{\text{Begin}} \times 100\% \]

Total Return:

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1. What Is Total Return?

Total return is a performance measure that reflects the actual rate of return of an investment or a pool of investments over a given evaluation period. It includes interest, capital gains, dividends, and distributions realized over the period.

2. How Does The Calculator Work?

The calculator uses the total return formula:

\[ \text{Total Return} = \frac{\text{End} - \text{Begin} + \text{Dividends}}{\text{Begin}} \times 100\% \]

Where:

\( \text{Begin} \) — Initial investment value (currency)
\( \text{End} \) — Final investment value (currency)
\( \text{Dividends} \) — Total dividends received during the period (currency)

Explanation: The formula calculates the percentage return by considering both capital appreciation and income generated from the investment.

3. Importance Of Total Return Calculation

Details: Total return provides a comprehensive view of investment performance, accounting for both price changes and income distributions. It's essential for comparing different investment options and assessing portfolio performance.

4. Using The Calculator

Tips: Enter the beginning value, ending value, and total dividends received. All values must be in the same currency and positive numbers. The beginning value must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between total return and price return?
A: Price return only considers capital appreciation/depreciation, while total return includes both capital changes and income from dividends or interest.

Q2: Should I include reinvested dividends?
A: For accurate total return calculation, include all dividends received during the period, whether reinvested or taken as cash.

Q3: What time period should I use?
A: You can calculate total return for any period (daily, monthly, yearly). Ensure all values correspond to the same time period.

Q4: How does currency affect the calculation?
A: All values must be in the same currency. For foreign investments, convert all amounts to your base currency using consistent exchange rates.

Q5: Can total return be negative?
A: Yes, if the ending value plus dividends is less than the beginning value, the total return will be negative, indicating a loss.