Stock Absolute & CAGR Return Calculator
Enter buy price, sell price, quantity, and holding period to see absolute return, CAGR (annualized return), profit or loss, and illustrative capital gains tax for listed equity in India (STCG 15%, LTCG 10% above ₹1 lakh exemption).
Under 1 year: short-term capital gains (STCG) at 15% on gains. One year or more: long-term (LTCG) at 10% on gains above ₹1,00,000 (illustrative; not tax advice).
CAGR (annualized)
14.47%
Absolute return
+50.00%
Profit (before tax)
+₹25,000
Net profit after tax
+₹25,000
Buy value vs result
Cost (buy)
₹50,000 • 67%
Gain vs cost
₹25,000 • 33%
Stock return, absolute return, and CAGR
When you buy shares at one price and sell at another, your total profit or loss is simply sale proceeds minus what you paid (including a per-share view times quantity). Absolute return is that profit or loss as a percentage of your cost—useful for seeing total performance over the whole period. CAGR (Compound Annual Growth Rate) answers a different question: if the investment had grown at a steady rate every year, what annual rate would match your outcome? It uses the formula CAGR = (Ending value / Beginning value)1/n − 1, where n is the holding period in years— identical in spirit to a standalone CAGR calculator, but framed for buy/sell price and shares.
Why CAGR matters for stocks
Two trades can have the same absolute return but different holding periods. CAGR lets you compare them fairly: a 50% gain in two years implies a lower annualized rate than a 50% gain in five years. For benchmarking against indices, FDs, or mutual fund fact sheets—which usually quote annualized figures—CAGR is the right common ground.
Formulas used
- Cost basis = buy price × quantity
- Sale proceeds = sell price × quantity
- Absolute return = (Sale proceeds − Cost basis) / Cost basis × 100%
- CAGR = (Sale proceeds / Cost basis)1/n − 1 (same as using per-share prices, since quantity cancels)
Illustrative tax (India, listed equity)
This calculator applies a simplified model: short-term (holding under one year) gains taxed at 15% on the gain; long-term (one year or more) gains taxed at 10% on the portion above ₹1 lakh in a year (exemption applied once to the gain shown). Actual liability depends on losses set off, other trades, grandfathering, and current law—use this only for rough planning, not filing decisions.
How to use this calculator
- Enter your buy price per share and sell price per share.
- Set quantity and holding period in years (decimals allowed, e.g. 0.5 for six months).
- Read CAGR, absolute return, pre- tax P&L, estimated tax, and net P&L after tax.
Frequently asked questions
What is the difference between absolute return and CAGR for stocks?
Absolute return is your total percentage gain or loss from buy to sell, ignoring how many years you held. CAGR spreads that outcome into an equivalent yearly compounded rate so you can compare holdings of different lengths—for example, two stocks both up 80% but held for 2 vs 8 years have very different CAGRs.
Does quantity affect CAGR?
No. CAGR depends on the ratio of ending value to beginning value and the number of years. Multiplying buy and sell by the same number of shares scales both sides equally, so per-share or total-value inputs give the same CAGR.
Can CAGR be negative?
Yes. If you sell below your total cost, the growth ratio is below one and CAGR is negative, meaning an average annual decline that would reproduce your loss over the holding period.
How are STCG and LTCG estimated here?
For holdings under one year, tax is taken as 15% of the gain. For one year or more, 10% is applied to the gain after a ₹1 lakh exemption (common treatment for listed equity LTCG). Losses are not taxed; the model does not include brokerage, STT, or carry-forward of losses.
Should I include dividends in the sell value?
This tool only compares buy and sell prices. For total return, add dividends (and reinvestment, if applicable) to your ending value or treat them separately; dividend taxation follows different rules.
Is this calculator free?
Yes. No sign-up is required. Results are computed in your browser for quick what-if analysis.