1. What is a Total Return Calculator?

Definition: This calculator measures the overall percentage return on an investment, considering both price changes and dividends.

Purpose: It helps investors evaluate the complete performance of their investments, not just price appreciation.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( TR \) — Total return (percentage)
• \( P_{new} \) — Current or selling price (USD)
• \( P_{old} \) — Original or purchase price (USD)
• \( D \) — Dividends received during holding period (USD)

Explanation: The formula calculates the total gain (price change plus dividends) as a percentage of the original investment.

3. Importance of Total Return Calculation

Details: Total return provides a complete picture of investment performance, especially important for dividend-paying stocks where price alone doesn't tell the full story.

4. Using the Calculator

Tips: Enter the original purchase price, current price, and total dividends received. All currency values must be ≥ 0, and original price must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Should I include all dividends or just cash dividends?
A: Include all dividends received during the holding period, whether cash or reinvested.

Q2: What time period does this calculate returns for?
A: The calculator shows return for whatever period your price data covers (e.g., 1 year, 5 years).

Q3: How does this differ from annualized return?
A: This shows total return for the period. Annualized return would adjust for the time period length.

Q4: Should I include transaction costs?
A: For precise personal returns, you could adjust prices to include commissions/fees, but typically these are excluded.

Q5: Can I use this for other investments besides stocks?
A: Yes, it works for any investment where you can track price changes and income received.