Question 1

How accurate is this stock returns calculator?

Accepted Answer

The calculator uses real historical adjusted close prices sourced from financial data providers. Adjusted prices account for stock splits, ensuring accurate long-term return calculations. Results are for informational purposes only and may differ slightly from actual brokerage returns due to the timing of trades, intraday price fluctuations, and data rounding.

Question 2

Does the calculator account for stock splits?

Accepted Answer

Yes. All price data used in calculations is split-adjusted. If a stock underwent a 4-for-1 split, historical prices are retroactively adjusted so that return calculations remain accurate and consistent across the entire date range.

Question 3

What is dividend reinvestment (DRIP)?

Accepted Answer

DRIP stands for Dividend Reinvestment Plan. Instead of receiving dividend payments as cash, DRIP automatically uses those dividends to purchase additional shares of the same stock. Over time, this creates a compounding effect that is widely considered one of the most effective long-term wealth-building strategies.

Question 4

Can I compare multiple stocks at once?

Accepted Answer

Yes. You can compare up to 4 stocks side by side on a single interactive chart. The calculator normalizes all tickers to the same start date and investment amount for a fair comparison.

Question 5

What timeframes are supported?

Accepted Answer

Preset timeframes include 1 month, 3 months, 6 months, YTD, 1 year, 3 years, 5 years, and 10 years. You can also set a fully custom date range with specific start and end dates.

Question 6

Does this calculator account for taxes and fees?

Accepted Answer

No. Returns shown are pre-tax and do not include brokerage fees, transaction costs, capital gains taxes, or dividend taxes. Consult a tax professional for personalized guidance.

Question 7

How is CAGR calculated?

Accepted Answer

CAGR (Compound Annual Growth Rate) is calculated as: (Ending Value / Beginning Value)^(1/Years) - 1. It represents the constant annual return needed to grow your beginning investment to its ending value over the time period.

Question 8

Can I use this for ETFs and mutual funds?

Accepted Answer

Yes. Enter any US-listed ticker symbol including ETFs like SPY, QQQ, DIA, VTI, and sector ETFs. To benchmark against the broader market, add SPY as a comparison ticker.