Simple Stock Profit Calculator

Total return = (ending value − starting value + dividends) ÷ starting value. If you bought 100 shares at $50 ($5,000), they are now worth $65 ($6,500), and you collected $200 in dividends, total return is ($6,500 − $5,000 + $200) ÷ $5,000 = 34%. To compare with other investments, annualize using (1 + total return)^(1/years) − 1.

Price return ignores dividends; total return includes them. Over the long run, dividends have contributed roughly 30%–40% of the S&P 500's total return. A stock with a flat price but a 4% dividend yield still delivers a 4% annual total return (before taxes and reinvestment effects).

Most major US brokers now charge $0 commissions on stock trades, but bid-ask spreads, account fees, and especially taxes still bite. Short-term gains (held under one year) are taxed as ordinary income (up to 37% federal), while long-term gains get preferential rates of 0%, 15%, or 20%. Holding a year and a day to qualify for long-term treatment can meaningfully boost after-tax returns.

The S&P 500 has averaged about 10% nominal and 7% real (inflation-adjusted) annually since 1928. Anything in that range over a multi-year period is a solid result for a diversified portfolio. Returns vary widely year to year - single-year results between −37% and +38% are common - so use long-term averages for planning, not short-term swings.