Capital Gains Yield Calculator

What is Capital Gains Yield?

Capital Gains Yield (CGY) is the percentage return on an investment source from the price appreciation of the asset. It measures the growth of an asset's price over time relative to its initial purchase price. Capital Gains Yield does not include other forms of return, such as interest payments or dividends received. It is a key metric used by stock market investors to calculate the raw price gains of their stock portfolios.

The Formula for Capital Gains Yield

To calculate Capital Gains Yield, you need the initial purchase price and the current (or sale) price. The formula is:

$$\text{Capital Gains Yield (CGY)} = \left( \frac{P_1 - P_0}{P_0} \right) \times 100$$

Where:

• $P_0$ is the initial purchase price of the asset.
• $P_1$ is the current market price or selling price of the asset.

Dividend Yield and Total Return

While Capital Gains Yield measures price appreciation, many stocks also pay dividends. To find the overall return on your investment, you must calculate the Dividend Yield and add it to the Capital Gains Yield:

$$\text{Dividend Yield} = \left( \frac{D}{P_0} \right) \times 100$$

$$\text{Total Return} = \text{Capital Gains Yield} + \text{Dividend Yield}$$

Where $D$ represents the total dividends received during the investment holding period.

How to Use the Capital Gains Yield Calculator

1. Enter Initial Price ($P_0$): Input the price you paid to purchase the asset.
2. Enter Current/Sale Price ($P_1$): Input the current market price or the price you sold it for.
3. Enter Dividends (Optional): Enter any dividends or interest received to calculate dividend yield and total return.
4. Check Results: View the calculated capital gains yield, dividend yield, and total return in percentage and monetary amounts.

For other financial indicators, you can check our Capital Gains Calculator or inspect company assets using the Capital Employed Calculator.