Compound Annual Growth Rate (CAGR) measures the annualized return of an investment, smoothing out volatility. Formula: CAGR = (End Value / Start Value)^(1/Years) − 1. The S&P 500 has a historical CAGR of about 10% before inflation.

Should I include dividends in my return?

Yes. Total return = price appreciation + dividends. Historically, dividends account for about 40% of the S&P 500's total return. Ignoring dividends significantly understates your actual performance.

What's the difference between total return and annualized return?

Total return is the overall percentage gain/loss for the entire period. Annualized return (CAGR) converts that into a yearly rate for comparison. A 50% total return over 5 years = 8.45% CAGR.

Stock Return Calculator — Total Return & CAGR

Historical Market Returns

Index	Period	CAGR (nominal)	CAGR (real, after inflation)
S&P 500	1928-2024	~10%	~7%
NASDAQ Composite	1985-2024	~11.5%	~8.5%
Dow Jones	1928-2024	~9.5%	~6.5%
International (MSCI EAFE)	1970-2024	~8%	~5%

Dividends: The Silent Contributor

Between 1930 and 2023, reinvested dividends and compounding accounted for approximately 84% of the S&P 500's total return, according to Hartford Funds research. A $10,000 investment in 1960 grew to roughly $70,000 from price appreciation alone — but $795,000 with dividends reinvested. That's an 11× difference. When evaluating stock performance, always include dividends in the calculation.

Capital Gains Tax Brackets (2024)

Filing Status	0% Rate	15% Rate	20% Rate
Single	Up to $47,025	$47,026-$518,900	Over $518,900
Married Filing Jointly	Up to $94,050	$94,051-$583,750	Over $583,750

Long-term rates (held > 1 year). Short-term gains are taxed as ordinary income.

How to Use This Stock Return Calculator

Enter the stock purchase price, current/selling price, dividends received, and holding period. The calculator shows total return, annualized return, and capital gains vs. income.

Formula & How It Works

Total Return = (End Price – Start Price + Dividends) / Start Price × 100%. Annualized = (1 + Total Return)^(1/years) – 1.

Calculation Example

Bought at $50, sold at $72 after 3 years, received $6 in dividends: Total Return = ($72-$50+$6)/$50 = 56%. Annualized = 16.0%/year.

Expert Tips

Include dividends in return calculations — they account for ~40% of S&P 500 historical returns. Compare against a benchmark index to assess whether stock-picking outperformed simple indexing.

Stock Return Calculator

Historical Market Returns

Dividends: The Silent Contributor

Capital Gains Tax Brackets (2024)

FAQ

Compound Interest

ROI Calculator

Retirement Calc

How to Use This Stock Return Calculator

Formula & How It Works

Calculation Example

Expert Tips