This tool will help you calculate your capital gains yield based on your asset’s purchase price and selling price.
Capital Gains Yield Calculator
This calculator helps you determine the capital gains yield on an investment. Capital gains yield is the price appreciation on an investment, usually a stock, calculated as a proportion of the original price over a specific period.
How to Use the Calculator
To use this calculator:
- Enter the current price per share of the stock in the “Current Price per Share” field.
- Enter the initial purchase price per share of the stock in the “Initial Price per Share” field.
- Enter any dividends paid per share during the holding period in the “Dividends Paid” field.
- Click the “Calculate” button to find out the capital gains yield.
How the Calculator Works
The capital gains yield is calculated using the following formula:
Capital Gains Yield = ((Current Price – Initial Price + Dividends) / Initial Price) * 100
This formula takes into account both the price appreciation and any dividends received, providing a comprehensive measure of your investment’s performance.
Limitations
Please note, this calculator does not take into account taxes or transaction fees which might affect the actual yield. Additionally, it assumes dividends are reinvested at the initial share price, and does not account for any other returns or losses that may occur outside of price appreciation and dividends.
Use Cases for This Calculator
Calculate Capital Gains Yield for a Single Investment:
Enter the initial share price, current share price, and dividend per share to calculate the capital gains yield. The result will show you the percentage return on your investment due to the increase in share price and dividends received.
Compare Capital Gains Yield for Multiple Investments:
You can input the details of different investments – initial share price, current share price, and dividends received – to compare the capital gains yield. This helps you make informed decisions based on the comparative returns.
Analyze the Impact of Dividends on Capital Gains:
By adjusting the dividend per share in the calculator, you can see how dividends affect the capital gains yield. This analysis can help you understand the significance of dividends in your investment portfolio.
Track Historical Capital Gains Yield:
Use the calculator to track the historical performance of your investments by inputting past share prices and dividends. This feature allows you to analyze the trends in capital gains yield over time.
Estimate Future Capital Gains Yield:
Input projected future share prices and expected dividends to estimate the potential capital gains yield. This helps in forecasting the returns on your investments and planning your investment strategy accordingly.
Calculate Annualized Capital Gains Yield:
If you input the holding period for your investment, the calculator can compute the annualized capital gains yield. This feature is useful for comparing the returns of investments held for different durations.
Adjust for Taxes and Fees:
Include taxes and fees incurred during the investment period in the calculator to get a more accurate net capital gains yield. This adjustment helps in understanding the actual returns after accounting for expenses.
Optimize Investment Portfolio:
By experimenting with different scenarios in the calculator, you can optimize your investment portfolio for maximum capital gains yield. This allows you to make strategic decisions to enhance your overall returns.
Share Results with Others:
The calculator provides the option to share the calculated capital gains yield with others via email or social media. This feature enables you to discuss and collaborate on investment decisions with your peers or financial advisors.
Generate Investment Reports:
You can generate comprehensive reports of your investment performance using the calculator. These reports include detailed calculations of capital gains yield, providing you with valuable insights for reviewing and analyzing your investment strategies.