Capital Gains Calculator

The Capital Gains Yield Calculator measures how much a stock or asset has gained or lost in value against what you originally paid. Calculate it by dividing the price change by the original purchase price. A positive yield shows the asset gained value; a negative yield shows it lost value. Together with dividend yield, they make up the two components of a stock's total return.

What is capital gains yield?

Capital gains yield is the percentage change in a security's price over a holding period. Think of it as the price or value part of your return, separate from any cash you collect along the way in the form of dividends/interest.

Understanding the formula

Two simple equations do the work.

Say you bought a share for $50 and it is now worth $65. Your capital gain is $15 and the yield is 30%. Drop the price to $40 instead, and the same math returns a $10 loss with a yield of -20%.

How to use this calculator

1. Type the amount you paid into the "Price Bought At" box.

2. Put the current market value into the "Current Price" box.

3. Read the capital gains in dollars and the capital gains yield as a percentage.

4. Reverse the process by entering any two known values, and the calculator will determine the missing fields.

Applications

• Assess the price performance of various portfolio holdings to see which positions have appreciated the most.

• When researching stocks, ETFs, or mutual funds, analyze historical capital gains yield as part of due diligence.

• Pair capital gains yield with dividend yield to get the total return on an investment.

• Before selling, estimate unrealized capital gains so you can plan around tax liability.

Tips

• The capital gains yield only captures price changes, so include dividends and other payouts to see the full picture of investment performance.

• A negative capital gains yield means you've got an unrealized loss on the asset since purchase.

• The yield ignores how long you've held the asset, so two investments with the same yield but different holding periods have different annualized returns.

FAQ

What is the difference between capital gains yield and dividend yield?

Capital gains yield tracks the percentage change in a stock's price. Dividend yield is the dividend income divided by the stock price. Add them together and you get the stock's total return.

Can capital gains yield be negative?

Yes. When the market price is below what you paid, capital gains yield is negative, which means you've incurred a loss, realized or unrealized.

Does the yield account for taxes or trading costs?

No. The number you get here is the gross price return. Subtract brokerage fees, capital gains tax, and any other transaction costs to see what you actually keep.

When should I recompute the yield?

Update it whenever the market price moves meaningfully or when you're reviewing your portfolio. Many investors do this monthly or quarterly rather than chasing daily fluctuations.