Capital Gains Yield Calculator

FINANCE   PERSONAL  

Capital Gains Yield Calculator is a tool to that compute the return on a stock based on the appreciation of the stock.

Capital Gains Yield (%):
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What does Capital Gains Yield mean?
The capital gains yield or CGY is the rise in the price of a security. The CGY is the rise in the stock price divided by the original price of the security, for common stock holdings.
Formula
CGY = (P1 - P0) / P0

Where:-

  • P0 = price of the stock when we invested into it
  • P1 = price of the stock after the first period
Example

Mr. X bought the stock, for $105. Now, after 2 years, the price of the stock has appreciated to $120 per share.

According to the formula, Capital Gains Yield is:-

  • = ($120 – $105) / $105
  • = 14.29%