📈 Capital Gains Yield Calculator
Calculate the capital gains yield from price appreciation
How to Use This Calculator
Enter Initial Purchase Price
Input the price at which you purchased the asset (e.g., $100 per share).
Enter Current Market Price
Input the current market price of the asset (e.g., $120 per share).
View Results
Click "Calculate" to see the capital gains yield percentage and capital gain amount.
Formula
Capital Gains Yield = ((Current Price - Initial Price) / Initial Price) × 100
Capital Gain = Current Price - Initial Price
Example Calculation:
If you bought a stock at $100 and it's now worth $120:
Step 1: Calculate capital gain
Capital Gain = $120 - $100 = $20
Step 2: Calculate capital gains yield
Capital Gains Yield = (($120 - $100) / $100) × 100
Capital Gains Yield = ($20 / $100) × 100 = 20%
About Capital Gains Yield Calculator
The capital gains yield calculator helps you determine the percentage return from price appreciation on an investment. Capital gains yield is the portion of total return that comes from the increase in the asset's price, excluding any income (like dividends or interest). It's a key metric for investors to understand how much of their return comes from price appreciation versus income generation.
When to Use This Calculator
- Stock Analysis: Calculate the capital gains yield on stock investments
- Portfolio Performance: Understand price appreciation in your investment portfolio
- Investment Comparison: Compare capital gains yields across different investments
- Total Return Analysis: Separate capital gains from dividend/interest income
- Tax Planning: Calculate capital gains for tax purposes
Why Use Our Calculator?
- ✅ Quick Calculation: Instantly calculate capital gains yield percentage
- ✅ Clear Metrics: See both percentage yield and dollar gain
- ✅ Easy Comparison: Compare capital gains across different investments
- ✅ 100% Free: No registration or payment required
- ✅ Mobile Friendly: Works seamlessly on all devices
- ✅ Accurate Results: Precise calculations for investment analysis
Common Applications
Stock Investment Analysis: Calculate how much of your stock return comes from price appreciation. For example, if a stock pays 2% dividends and has 20% capital gains yield, your total return is 22%.
Growth vs. Income Stocks: Compare capital gains yield between growth stocks (high capital gains, low dividends) and income stocks (low capital gains, high dividends) to understand return composition.
Portfolio Allocation: Analyze your portfolio's capital gains yield to understand whether you're more focused on growth (capital gains) or income (dividends/interest).
Tax-Efficient Investing: Calculate capital gains for tax planning. Long-term capital gains (held over 1 year) are taxed at lower rates than short-term gains or ordinary income.
Tips for Best Results
- Use the actual purchase price including any fees or commissions
- Use current market price for accurate yield calculations
- Remember that capital gains yield doesn't include dividends or interest income
- For total return, add capital gains yield to dividend yield (for stocks) or interest yield (for bonds)
- Consider the time period when comparing capital gains yields
Frequently Asked Questions
What is capital gains yield?
Capital gains yield is the percentage return from the increase in an asset's price, calculated as (Current Price - Initial Price) / Initial Price × 100. It represents the portion of total return that comes from price appreciation, excluding any income like dividends or interest.
How is capital gains yield different from total return?
Capital gains yield only includes price appreciation. Total return includes both capital gains yield and income yield (dividends for stocks, interest for bonds). Total Return = Capital Gains Yield + Dividend/Interest Yield.
Can capital gains yield be negative?
Yes, if the current price is lower than the initial purchase price, you'll have a negative capital gains yield, which represents a loss. This is also called a capital loss.
Does capital gains yield account for dividends?
No, capital gains yield only measures price appreciation. If you want to include dividends, you need to calculate total return separately by adding dividend yield to capital gains yield.
Why is capital gains yield important?
Capital gains yield helps investors understand the return composition of their investments. It's particularly useful for comparing growth-oriented investments and understanding how much of your return comes from price appreciation versus income generation.