Total Shareholder Return (TSR) Calculator

This Total Shareholder Return (TSR) Calculator can help you determine the total return on a stock investment based on the original stock price, dividends received, and final stock price.

To determine the TSR, follow the steps outlined below:

1. Select the currency you'd like to use (optional)
2. Fill in the starting stock price.
3. Enter the stock's final price.
4. Enter the total amount of dividends that have been paid.
5. Click on "Calculate TSR".

Total Shareholder Return: An Overview (TSR)

The total shareholder return (TSR), also known as total stock return or total return, is the total amount of cash gain every shareholder makes on each individual stock. This figure includes both capital gains and dividends over a specific period of time.

When you make an investment, you'll be interested in gaining insights into what you'll get out of it. If you are not getting a return on your investment, it is not worth the effort you put into it. With that in mind, knowing how to calculate the stock return allows you to determine the real cash value that you will receive as a result of your investment.

Stocks may provide you with a return on your investment in a variety of ways. You may profit from the growth in the stock's value as it rises with the market. You might also get money from the business in the form of dividends. The stock return formula combines all of these returns to provide you with a comprehensive view of your investment.

Total Shareholder Return Formula & Example

To compute the total shareholder return, the TSR calculator employs the following fundamental formula:

TSR = [(P_E - P_I) + D] / P_I × 100%

Where:

TSR  is the earnings per share,

P_E  is the ending stock price,

P_I  is the initial stock price,

D  is the total amount of dividends paid.

Example: Assume that a corporation wishes to evaluate its entire market performance compared to its competitors. Their stock price at the start of the year was $110 a share. Their stock price at the conclusion of the period was $140 a share. Dividends of $5 were paid to each shareholder. What is the percentage of overall shareholder return achieved?

Let's break it down:

  Initial stock price (PI): $110

  Ending stock price (PE): $140

  Dividends (D): $5

We can calculate the total return by applying the values to our variables:

TSR = [(140 − 110) + 5] / 110 * 100%

= 31.82%

In this scenario, we would have a $35 stock return cash value and a total shareholder return rate of 31.82 percent.

You may also be interested in our free US T-Bill Calculator or Expected Return Calculator