Stock Split Calculator

Calculate the instant impact of a forward or reverse stock split on your portfolio's share quantity and stock price.

Understanding Stock Splits

When a company announces a stock split, it can be confusing to figure out what happens to your shares. Our Stock Split Calculator removes the confusion by instantly displaying your updated share count and new average purchase price.

How to Use the Calculator

  1. Current Quantity: Enter the exact number of shares you currently hold.
  2. Current Price: Enter the price at which the stock is currently trading.
  3. Split Ratio: Select the announced split ratio (e.g., 1:5 means 5 new shares for every 1 old share).
  4. Calculate: See your updated portfolio numbers immediately.

The Split Math

For an X:Y split (Y new shares for X old shares):

New Shares = Old Shares × (Y / X)
New Price = Old Price ÷ (Y / X)
  • Total Value Check: (New Shares × New Price) will always equal (Old Shares × Old Price).

Why Do Companies Split Their Stock?

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Increase LiquidityA lower share price makes it easier for retail investors to buy and sell the stock.
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Psychological AppealA stock trading at ₹100 looks cheaper and more accessible than one trading at ₹10,000.
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Options TradingLower prices make option contracts (which handle lots of 100 shares) much more affordable.

Frequently Asked Questions