# Capital Gains Yield Calculator

Oct 24, 2018

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%