Stock What if Calculator

Stock What-If Scenario Calculator

Calculation Results:

Total Investment Cost: $0.00

Potential Sale Value: $0.00

Total Dividends Received: $0.00

Gross Profit/Loss (Price Change Only): $0.00

Net Profit/Loss (Including Dividends & Fees): $0.00

Return on Investment (ROI): 0.00%

function calculateStockWhatIf() { var numShares = parseFloat(document.getElementById('numShares').value); var purchasePrice = parseFloat(document.getElementById('purchasePrice').value); var targetPrice = parseFloat(document.getElementById('targetPrice').value); var annualDividend = parseFloat(document.getElementById('annualDividend').value); var yearsHeld = parseFloat(document.getElementById('yearsHeld').value); var initialCommission = parseFloat(document.getElementById('initialCommission').value); var sellingCommission = parseFloat(document.getElementById('sellingCommission').value); // Input validation if (isNaN(numShares) || numShares <= 0) { alert("Please enter a valid number of shares (greater than 0)."); return; } if (isNaN(purchasePrice) || purchasePrice <= 0) { alert("Please enter a valid purchase price per share (greater than 0)."); return; } if (isNaN(targetPrice) || targetPrice <= 0) { alert("Please enter a valid target/current price per share (greater than 0)."); return; } if (isNaN(annualDividend) || annualDividend < 0) { alert("Please enter a valid annual dividend per share (0 or greater)."); return; } if (isNaN(yearsHeld) || yearsHeld < 0) { alert("Please enter a valid number of years held (0 or greater)."); return; } if (isNaN(initialCommission) || initialCommission < 0) { alert("Please enter a valid initial commission (0 or greater)."); return; } if (isNaN(sellingCommission) || sellingCommission 0) { roiPercentage = (netProfitLoss / totalInvestmentCost) * 100; } // Display results document.getElementById('totalInvestmentCostOutput').innerHTML = 'Total Investment Cost: $' + totalInvestmentCost.toFixed(2); document.getElementById('potentialSaleValueOutput').innerHTML = 'Potential Sale Value: $' + potentialSaleValue.toFixed(2); document.getElementById('totalDividendsOutput').innerHTML = 'Total Dividends Received: $' + totalDividendsReceived.toFixed(2); document.getElementById('grossProfitLossOutput').innerHTML = 'Gross Profit/Loss (Price Change Only): $' + grossProfitLossFromPriceChange.toFixed(2); document.getElementById('netProfitLossOutput').innerHTML = 'Net Profit/Loss (Including Dividends & Fees): $' + netProfitLoss.toFixed(2); document.getElementById('roiPercentageOutput').innerHTML = 'Return on Investment (ROI): ' + roiPercentage.toFixed(2) + '%'; }

Understanding the Stock What-If Scenario Calculator

Investing in the stock market involves a degree of uncertainty. While past performance doesn't guarantee future results, a "what-if" calculator can be an invaluable tool for investors to model potential outcomes based on different scenarios. This calculator helps you visualize how changes in stock price, dividends, and holding periods can impact your overall profit or loss.

How It Works

Our Stock What-If Scenario Calculator allows you to input key variables related to a stock investment and instantly see the potential financial results. By adjusting inputs like the target price or years held, you can explore various possibilities and better understand the risk and reward profile of your investment decisions.

Key Inputs Explained:

• Number of Shares: The total quantity of shares you own or plan to purchase.
• Purchase Price per Share ($): The price at which you bought each individual share.
• Target/Current Price per Share ($): This is the "what-if" component. It's the hypothetical future price you expect the stock to reach, or its current market price if you're evaluating an existing holding.
• Annual Dividend per Share ($): The total dividend amount paid out per share over one year. Enter 0 if the stock does not pay dividends.
• Years Held: The duration, in years, for which you plan to hold the stock. This impacts the total dividends received.
• Initial Commission ($): Any fees or commissions paid to your broker when you initially purchased the shares.
• Selling Commission ($): Any fees or commissions you anticipate paying when you eventually sell the shares.

Understanding the Outputs:

• Total Investment Cost: The total amount of money initially spent, including the cost of shares and initial commissions.
• Potential Sale Value: The total value of your shares if sold at the specified Target/Current Price per Share.
• Total Dividends Received: The cumulative amount of dividends you would receive over the specified Years Held.
• Gross Profit/Loss (Price Change Only): The profit or loss derived solely from the change in the stock's price, before accounting for dividends and commissions.
• Net Profit/Loss (Including Dividends & Fees): The ultimate profit or loss from your investment, taking into account the change in stock price, all dividends received, and both initial and selling commissions. This is your true bottom line.
• Return on Investment (ROI): A percentage that measures the efficiency or profitability of your investment. It's calculated as (Net Profit/Loss / Total Investment Cost) * 100. A positive ROI indicates a gain, while a negative ROI indicates a loss.

Example Scenario:

Let's say you bought 100 shares of a company at $50.00 per share, paying a $5.00 initial commission. The stock pays an annual dividend of $1.50 per share. You plan to hold it for 5 years and anticipate a $5.00 selling commission. You want to see what happens if the stock reaches $60.00 per share.

• Number of Shares: 100
• Purchase Price per Share: $50.00
• Target/Current Price per Share: $60.00
• Annual Dividend per Share: $1.50
• Years Held: 5
• Initial Commission: $5.00
• Selling Commission: $5.00

Using the calculator, you would find:

• Total Investment Cost: $5,005.00 (100 * $50 + $5)
• Potential Sale Value: $6,000.00 (100 * $60)
• Total Dividends Received: $750.00 ($1.50 * 100 * 5)
• Gross Profit/Loss (Price Change Only): $1,000.00 ($6,000 – $5,000)
• Net Profit/Loss (Including Dividends & Fees): $1,740.00 ($1,000 + $750 – $5 – $5)
• Return on Investment (ROI): 34.77% ($1,740 / $5,005 * 100)

This example demonstrates how the calculator provides a comprehensive view of your potential returns, factoring in both capital appreciation and dividend income, while also accounting for transaction costs.

Disclaimer:

This calculator provides estimates based on the inputs you provide. Stock market investments are subject to risks, including the potential loss of principal. Actual results may vary significantly due to market volatility, company performance, changes in dividend policies, tax implications, and other unforeseen factors. This tool is for informational and educational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making investment decisions.