How to Calculate Stock Returns: A Practical Guide

Evaluating the performance of your equity trades requires looking beyond the raw difference between the buy price and sell price. Accurate performance measurement factors in transaction fees, trading commissions, and dividend payouts received over the holding duration.

You can calculate exact net profit and annualized return with the free Burnjet Stock Return Calculator.

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The Stock Return Equation #

Where:

• Buy Price: Purchase price per share
• Sell Price: Final exit price per share
• $Q$: Number of shares traded
• Total Brokerage: Combined transaction fees paid upon purchase and sale

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Step-by-Step: Using the Burnjet Stock Return Calculator #

Step 1: Open the Calculator #

Navigate to the Burnjet Stock Return Calculator.

Step 2: Input Purchase Information #

Enter your Buy Price per Share (e.g., $50),$Quantity of Shares (e.g.,100$), and any Buy Brokerage fee.

Step 3: Enter Exit Details #

Input your Sell Price per Share (e.g., $75),$Sell Brokerage fee (e.g.,10), and total Dividends Earned (e.g., $150).

Step 4: Analyze Realized Performance #

The tool calculates:

• Total Cost Basis
• Gross & Net Profit
• Net Return Percentage

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Worked Example: Realized Stock Trade #

• Buy Details: $100$ shares at $50.00 each ($+$10 commission) = Total Buy Cost of$10commission)=TotalBuyCostof∗∗5,010.00
• Sell Details: $100$ shares sold at $75.00 each ($-$10 commission) = Net Proceeds of$10commission)=NetProceedsof∗∗7,490.00
• Dividends Received: $120.00

Net Return Breakdown: #

• Gross Capital Gain: $2,500.00
• Total Commissions: -$20.00
• Dividend Income: +$120.00
• Net Cash Profit: $2,600.00
• Net Return on Investment: 51.90%

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Related Stock Market Tools #

• Stock Average Price Calculator: Find your break-even cost after multiple purchase tranches.
• Dividend Yield Calculator: Determine annual dividend income yield.
• Capital Gains Tax Calculator: Estimate tax liabilities on realized gains.