Stock Split Calculator: Share Price & Ratio Analysis

What is a Stock Split?

A stock split is a corporate action where a company divides its existing shares into multiple shares. For example, in a 2-for-1 stock split, each existing share is split into two shares, effectively doubling the number of outstanding shares while halving the price per share. This action doesn’t change the company’s market capitalization or the total value of shareholders’ holdings, but it makes individual shares more affordable and potentially increases market liquidity.

How to Calculate Stock Split Results

1. Enter your current stock price in dollars in the “Current Stock Price” field. This should be the price per share before the split takes effect.
2. Input the split ratio in the designated field. For example, if it’s a 2-for-1 split, enter “2”. For a 3-for-1 split, enter “3”, and so on. This represents how many new shares you’ll receive for each existing share.
3. Specify the number of shares you currently own in the “Number of Shares Owned” field. This should be your pre-split share count.
4. Click the “Calculate” button to see your results. The calculator will display: • Your new total number of shares • The adjusted price per share • The total value of your investment • A detailed explanation of the calculations
5. Review the calculation explanation to understand how your new share count and price were determined. The total value should remain the same before and after the split.
6. If you need to perform another calculation, use the “Clear” button to reset all fields and start over.