What this capital gains yield calculator does
This calculator finds your capital gains yield. You enter the purchase price and the current price. The tool then shows the figure as a percentage. It reveals how much the price has risen or fallen. This is a key investing measure. Feel free to try a few scenarios. The result helps you judge a holding.
What capital gains yield is
Capital gains yield is the price change on an asset. It is the rise in price divided by the purchase price. So it shows the gain from price alone. It leaves out any dividends or income. It is a core part of total return. It is widely used by investors. It is shown as a percentage.
How it is calculated
The steps are simple to follow. You take the current price less the purchase price. Then you divide by the purchase price. You multiply by one hundred. That is your capital gains yield. The calculator works it out for you.
What the result tells you
The result shows your capital gains yield. A figure of sixteen percent means the price rose that much. A higher number means a bigger price gain. A negative one means the price fell. So it shows the pure price move. It puts the price change against your cost. It is a clean return figure.
Why capital gains yield matters
Capital gains yield reveals your price return. It shows the gain from the price alone. It is one half of total return. The other half is income like dividends. It helps you judge a stock or fund. Investors watch it closely. It is core to return analysis.
Capital gains yield and total return
Capital gains yield is the price part of return. Dividend yield is the income part. Add the two for total return. So price gain alone can mislead. A high dividend can lift a flat price. So weigh both parts together. Use both for a full view.
What a positive or negative yield means
A positive yield means the price rose. Your asset is worth more than you paid. A negative yield means the price fell. Your asset is worth less than you paid. So the sign shows the direction. The size shows the scale of the move. Read both with care.
How to use it
Enter the purchase price first. Add the current price next. Read your capital gains yield as a percentage. See how far the price has moved. Then compare a couple of scenarios. Compare a few holdings. Use it to judge a holding.
The limits of capital gains yield
Capital gains yield has clear limits. It ignores dividends and income. A high-income stock can look weak. It is a snapshot, not an annual rate. A long hold needs an annualised figure. So pair it with dividend yield. So read the result with a clear head.
Common mistakes to avoid
A common mistake is ignoring dividends. Capital gains yield is only the price part. Another is mixing up the two prices. The current price goes on top. Some forget to annualise a long hold. Others ignore fees and taxes. A clear view avoids these traps.
A final tip
Use this figure to judge a holding. Remember it is the price change over the purchase price. Add dividend yield for total return. Annualise it over a long hold. Mind fees and taxes too. Do not read price gain alone. A quick review keeps you on track.