Capital Gains Yield Calculator
Calculate the capital gains yield on a share — the price-only portion of its return — along with the dividend yield and total stock return from the purchase price, current price, and annual dividend.
Capital gains yield
20%
- Net capital gain
- £10.00
- Dividend yield
- 4%
- Total stock return
- 24%
- Price multiple
- 1.2
Capital gains yield is the price-only return: (Current − Purchase) / Purchase. Adding the dividend yield (annual dividend ÷ purchase price) gives the total stock return — the figure investors actually earn over the holding period.
How to use this calculator
Enter the price you paid per share, the current (or sale) price per share, and the annual dividend per share. The capital gains yield, dividend yield, total stock return, net gain, and price multiple update as you type.
How the calculation works
Capital gains yield is (Current − Purchase) / Purchase, expressed as a percentage. It captures only the price change and ignores dividends. Dividend yield is the annual dividend divided by the purchase price. Adding the two gives the total stock return — the figure that mirrors the investor's actual cash-equivalent return over the period.
Worked example
Buy a share at £50 and sell it later at £60 after collecting £2 in dividends per share. Capital gains yield = (60 − 50) / 50 = 20%. Dividend yield = 2 / 50 = 4%. Total stock return = 24%. The price multiple is 60 / 50 = 1.2×.
Frequently asked questions
What is capital gains yield?
Capital gains yield (CGY) is the percentage change in the price of a share over a holding period, ignoring any dividends or income. It is calculated as (Current price − Purchase price) / Purchase price, expressed as a percentage. A CGY of 20% means the share price rose by a fifth; a CGY of −15% means it dropped by 15%. CGY tells you only about the price move — to see the full return you also need the dividend yield.
How is capital gains yield different from total return?
Capital gains yield only counts the change in price. Total stock return adds the dividend yield (annual income ÷ purchase price) on top. For a quiet, mature dividend payer like a utility, the dividend yield can be the bigger half of the total return; for a growth stock that pays no dividend, total return equals the capital gains yield. Treating CGY as the whole return systematically understates income-paying stocks.
Is capital gains yield the same as ROI?
They are close, but ROI conventionally bundles every cash flow — dividends, fees, taxes — into a single net figure, whereas capital gains yield strictly isolates the price-only portion. Use CGY when you want to decompose where a stock's return came from (price vs. income). Use ROI when you just want the total bottom-line return.
Does this calculator account for fees, taxes, or stock splits?
No. The figures assume the purchase price and current price are on the same per-share basis, after any stock splits have been adjusted for. Fees and taxes should be subtracted from the current price (or added to the purchase price) before you enter them if you want the after-cost yield. For UK investors with shares held outside an ISA or SIPP, remember that realised capital gains over the annual allowance are taxable — see HMRC for the current rate.
Can capital gains yield be negative?
Yes. If the current price is below your purchase price, the capital gains yield is negative — that is simply an unrealised (or realised) capital loss expressed as a percentage of what you paid. The total stock return can still be positive if the dividend yield is large enough to outweigh the price drop.
How does capital gains yield relate to the dividend discount model?
In the constant-growth dividend discount model, a stock's expected total return decomposes neatly into dividend yield + expected capital gains yield, and the expected capital gains yield equals the dividend growth rate g. So if a share yields 3% and dividends are expected to grow at 5% per year, the model predicts an 8% total return. That clean decomposition is why capital gains yield is the standard term in finance textbooks.