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Price Return vs Total Return, Explained

Why stock P/L from price alone can understate what you earned when dividends are paid — and how Tools.Town separates the two.

25 August 2026 4 min read By Tools.Town Team Fact Checked

Key Takeaways

  • Does Tools.Town reinvest dividends: Dividend rows are cash credited to total return
  • Which CAGR should I quote: Price CAGR uses market value only

Two ways to measure “how did I do?”

Price return (price P/L) looks only at the market value of shares you still hold versus what you paid for them.

Total return adds cash dividends you received while holding (and, in full broker math, other cash flows). On Tools.Town:

Total return ₹ = (market value − cost basis) + dividends received

Example

  • Cost basis: ₹1,00,000
  • Market value today: ₹1,10,000 → price P/L ₹10,000 (+10%)
  • Dividends over the period: ₹5,000
  • Total return: ₹15,000 (+15%)

Same holding — different story if you ignore dividends.

CAGR

If you enter buy and as-of dates, the calculator can show:

  • Price CAGR — annualised from cost → market value
  • Total-return CAGR — annualised from cost → market value + dividends

Neither includes taxes, brokerage, or currency effects.

Try it

  1. Open the Stock Investment Return Calculator.
  2. Enter buy price, amount, and current price.
  3. Add Dividend corporate-action rows (₹ per share × shares as of that date).
  4. Compare Price P/L vs Total return on the result card.

For yield from price + DPS alone (no holding history), use the Dividend Yield Calculator.

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Frequently Asked Questions

Does Tools.Town reinvest dividends?
No. Dividend rows are cash credited to total return. DRIP (buy more shares) is out of scope for now.
Which CAGR should I quote?
Price CAGR uses market value only. Total-return CAGR adds cash dividends to the ending value. Say which one you mean.

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