formula directory logo

HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Capital Gains Yield

The formula for the capital gains yield is used to calculate the return on a stock based solely on the appreciation of the stock. The formula for capital gains yield does not include dividends paid on the stock, which can be found using the dividend yield. The capital gains yield and dividend yield is combined to calculate the total stock return.

The capital gains yield formula uses the rate of change formula. Calculating the capital gains yield is effectively calculating the rate of change of the stock price. The rate of change can be found by subtracting an ending amount from the original amount then divided by the original amount.

It is important to remember that if the yields for multiple periods are known, they can not be simply summed to determine the yield for the entire period

s-p p

Here,p=initial stock price,s=stock price after first period

ENTER THE VARIABLES TO BE USED IN THE FORMULA