Υπολογιστής Stock Return

Πώς να χρησιμοποιήσετε αυτήν την αριθμομηχανή

1. Εισαγάγετε Buy Price Per Share (€)
2. Εισαγάγετε Sell Price Per Share (€)
3. Εισαγάγετε Number of Shares
4. Εισαγάγετε Holding Period (years)
5. Κάντε κλικ στο κουμπί Υπολογισμός
6. Διαβάστε το αποτέλεσμα που εμφανίζεται κάτω από την αριθμομηχανή

How to Calculate Stock Investment Returns

The total return on a stock investment includes both price appreciation (or depreciation) and any dividends received. Our calculator focuses on price-based return, computing three key metrics: total profit/loss, total return percentage, and annualized (CAGR) return.

Total Return % = (Sell Price − Buy Price) / Buy Price × 100. A stock bought at €50 and sold at €75 generates a 50% total return, regardless of how long you held it. Annualized Return (CAGR) = (Sell Price / Buy Price)^(1/years) − 1. This normalizes returns across different holding periods, allowing meaningful comparison. A 50% total return over 1 year is spectacular; the same 50% return over 10 years represents only 4.1% annually—below inflation.

CAGR is the most honest way to compare investment returns. When a fund or advisor says 'we've returned 200% over 10 years,' that sounds impressive until you calculate the CAGR: (1+2.0)^(1/10) − 1 = 11.6%/year—roughly in line with the S&P 500 average, implying no alpha was generated.

Risk-Adjusted Returns: Thinking Beyond Raw Percentage

Raw return is only part of the picture. A hedge fund returning 15% annually with massive volatility is less attractive than an index fund returning 11% with steady, predictable growth—especially for investors who can't stomach watching 40% drawdowns. Risk-adjusted return metrics put context around raw performance numbers.

The Sharpe ratio = (Portfolio Return − Risk-Free Rate) / Standard Deviation of Returns. A Sharpe ratio above 1.0 is generally considered good; above 2.0 is excellent. The risk-free rate is typically the 90-day Treasury bill yield. Two portfolios both returning 15% might have Sharpe ratios of 0.8 and 1.6—the latter delivers more return per unit of risk.

Maximum drawdown measures the largest peak-to-trough decline in portfolio value. A growth stock might return 200% over 5 years but experience a 70% drawdown during that period. Many investors panic-sell during large drawdowns, crystallizing losses and missing the recovery. Understanding maximum historical drawdowns helps you assess whether a strategy's volatility is compatible with your risk tolerance.

Common Investment Mistakes to Avoid

Even with a good calculator, investors regularly make costly mistakes. Performance chasing: Buying last year's best-performing stocks or funds is one of the most reliably bad strategies. Morningstar research shows that the average investor's return significantly lags the funds they invest in because they buy high after strong performance and sell low after poor performance. Ignoring fees: A 1% annual management fee sounds small but reduces a €100,000 30-year portfolio by over €90,000 compared to a 0.05% index fund—a difference of nearly 20% of final wealth.

Overconfidence: Research consistently shows that active investors who trade frequently underperform those who buy and hold, even after accounting for transaction costs. The more confident an investor is in their stock-picking ability, the worse they tend to perform (a phenomenon known as overconfidence bias). Concentration risk: Holding a few stocks exposes you to company-specific risk that diversification eliminates. Even professional portfolio managers with teams of analysts rarely beat diversified index funds over 15+ year periods. A total market index fund holding 3,500+ companies eliminates company-specific risk entirely.

Frequently Asked Questions