Capital Gains Yield Calculator

Formula

Capital gains yield = (sale price − purchase price) ÷ purchase price × 100%.

Worked example

With Purchase price per unit: 100 currency units, Sale price per unit: 115 currency units, capital gains yield is 15 %.

Inputs and calculation

Subtract the original unit price from the later unit price, then express that difference relative to the original price. A negative answer indicates a price loss over the measured holding interval. The displayed relationship is Capital gains yield = (sale price − purchase price) ÷ purchase price × 100%. Keep the fields' displayed units attached when reproducing this relationship by hand.

Worked numerical example

For example, enter purchase price per unit 100 currency units, sale price per unit 115 currency units. Those inputs produce capital gains yield of 15 %. The same values also give price gain or loss 15 currency units.

Holding the other example values fixed, change purchase price per unit from 100 to 110 currency units. The main output becomes 4.5455 %. This comparison isolates the effect of that one input.

How to read and use the result

This is a price-return component only. Dividends, interest, reinvestment, broker charges, taxes and inflation can change the investor's total or real return. Separate appreciation from dividend income when reviewing a hypothetical investment result.

Practical context

Buying one share at 100 and later selling at 115 gives a 15% price yield before trading costs. A 3 dividend during that holding period would make a simple total-return comparison different, and a stock split could make raw per-share prices misleading unless adjusted.

Assumptions and scope

Both prices describe the same asset unit and adjusted basis. The formula makes no annualization and assumes the purchase and sale prices are directly comparable. Replace the example defaults with measured inputs for your situation and account separately for factors outside these fields.

Checks and common mistakes

Corporate actions such as splits can make raw prices incomparable. Do not call a positive capital gains yield a realized taxable gain unless the asset was sold and tax basis is known.

Common questions

What should I verify before using the Capital Gains Yield Calculator result?

The time period also matters: 15% over one month and over five years are not equivalent annual performances. If tax is relevant, the sale proceeds must be compared with adjusted basis under the applicable rules rather than this simplified original-price field.

Sources and references

• Investor.gov: Risk and return