Capital Gains Yield Calculator
The capital gains yield calculator measures the price return on an asset from the bought price to the current price. It subtracts the bought price from the current price to find the dollar capital gain, then divides that gain by the bought price to express the change as a percentage. The result is useful for stocks, ETFs, bonds, crypto, collectibles, private-company shares, or any asset where you want to isolate price appreciation from income.
This page is narrower than the percentage return calculator, which can measure any ending value relative to a starting amount and annualize it. It is also different from the dividend yield calculator, which focuses on income, and from the capital gains tax UK calculator, which estimates tax under a specific system. For bond investors, capital gains yield can explain the price component of performance while the credit spread calculator explains the yield spread that may move prices.
How to use the calculator
Enter the bought price as the original purchase price, cost basis, or starting price per unit. Enter the current price as the current market value, sale price, or ending price per unit. The calculator requires the bought price to be greater than zero and the current price to be zero or higher. That matches the form’s validation and avoids dividing by zero.
You can use per-share prices or total position values as long as the basis is consistent. For example, $100 to $120 per share and $10,000 to $12,000 for the whole position both produce a 20% capital gains yield. Problems arise when one input is per share and the other is total value. If commissions or bid-ask spreads are material, adjust the bought price upward or current price downward before entering the numbers so the price return reflects your net transaction economics.
Formula used by the calculator
The calculator starts with the dollar capital gain:
It then divides by the bought price and multiplies by 100:
The primary result is the capital gains yield. The supporting rows show capital gain, bought price, and current price. The tone is positive when the yield is zero or above and negative when the current price is below the bought price. Dividends and interest are not part of this price-return calculation.
Example: calculating capital gains yield
Use the default inputs: $100 bought price and $120 current price. Capital gain is $120 minus $100, which equals $20.00. Capital gains yield is $20 divided by $100, multiplied by 100, which equals 20.00%.
The calculator therefore shows Capital gains yield: 20.00% as the primary result. The item rows show Capital gain: $20.00, Bought price: $100.00, and Current price: $120.00. The note says that $100.00 changing to $120.00 produces a price return of 20.00%, and that dividends or interest are not included. That note is not a caveat added after the fact; it describes the exact calculator.
For a loss example, enter a bought price of $50 and a current price of $45. The capital gain becomes negative $5. The yield is negative $5 divided by $50, multiplied by 100, or negative 10.00%. The calculator displays the negative sign because a price loss is still a capital gains yield calculation; it is simply below zero.
How investors use capital gains yield
Capital gains yield separates price movement from income. That distinction is useful when comparing assets with different payout policies. A growth stock may produce most of its return through price appreciation. A dividend stock may produce a smaller capital gains yield but higher cash income. A bond purchased at a discount may have price appreciation as it approaches maturity, while the coupon contributes separately to total return.
The metric also helps explain why tax and performance reports can look different. An unrealized capital gains yield tells you how far the current price is above cost, but tax usually depends on realized sales, holding period, allowable losses, and local law. A portfolio can have a high unrealized capital gains yield and no current tax due if nothing has been sold in a taxable account. Conversely, a realized gain can be taxable even if a different position still has an unrealized loss.
Use capital gains yield with sibling calculators for a fuller picture. The percentage return calculator adds annualized return for holding-period comparison. The expense ratio calculator shows how fund fees can reduce long-term growth. The basis point calculator translates small yield or fee changes that may influence asset prices.
Caveats and common mistakes
- Ignoring income: Dividends, bond coupons, and interest are excluded. Add them separately for total return.
- Ignoring fees: Brokerage commissions, spreads, loads, and platform costs can reduce net price return.
- Mixing bases: Per-share inputs must be compared with per-share inputs; total position inputs with total position inputs.
- Forgetting splits: Stock splits change share count and per-share prices. Use split-adjusted prices when appropriate.
- Tax confusion: Capital gains yield is not a tax bill and does not determine short-term or long-term treatment.
- Timing: The calculator does not annualize. A 20% price return in one month and in five years have very different implications.
The strength of capital gains yield is its focus. It gives a clean price-appreciation percentage, then leaves income, time, tax, and risk analysis to other tools.
Sources
- CFPB Regulation Z — current through 2026-07-09; Rate terminology only; CAPM, WACC, yield/spread and coupon arithmetic are analytical conventions, not prescribed by Regulation Z.
- Calculation scope: The equations and assumptions described above are applied only to values entered in the form. No live rates, prices, tax rules, lender terms, or accounting classifications are fetched. Results are user scenarios, not quotes or prescribed classifications.