Stock Split Calculator
Calculate adjusted share count and price after stock splits - understand how splits affect your portfolio
Shares before split
Your purchase price
Forward splits increase shares, reverse splits decrease shares
Enter current price to see gain/loss after split adjustment
Share Count
Price per Share
Split Type
Forward Split
Shares increase, price decreases
New Share Count
500
+400 shares
Adjusted Price per Share
₹200.00
Your new cost basis per share
Value Before Split
₹100,000
Original investment value
Value After Split
₹100,000
Portfolio value unchanged
Stock splits don't change your portfolio value - only share count and price per share adjust
Your cost basis per share is now ₹200.00
Forward splits make shares more affordable but don't add intrinsic value
What is a Stock Split?
A stock split is when a company increases the number of its shares to boost liquidity. In a forward split (e.g., 1:5), each share becomes 5 shares at 1/5th the price. In a reverse split (e.g., 5:1), 5 shares become 1 share at 5x the price. Your total investment value remains the same.
Why Do Companies Split Stocks?
- Forward splits: Make shares more affordable for retail investors
- Forward splits: Increase trading liquidity and market activity
- Reverse splits: Increase share price to meet exchange listing requirements
- Reverse splits: Improve perception of stock value (psychological effect)
Important: Stock splits are cosmetic changes that don't affect the fundamental value of your investment. Your ownership percentage in the company and total portfolio value remain exactly the same before and after a split. Only use adjusted prices when calculating returns.
Does a stock split make me richer?
No. A stock split is like cutting a pizza into more slices - you have more pieces, but the total amount of pizza (your wealth) stays the same. Your ownership percentage and portfolio value don't change.
How do I calculate my new cost basis after a split?
Divide your original cost basis by the split multiplier. For a 1:5 split with original cost of ₹1,000, your new cost basis is ₹1,000 ÷ 5 = ₹200 per share. This calculator does this automatically.
What's the difference between forward and reverse splits?
Forward splits increase share count and decrease price (1:2, 1:5). Companies do this to make shares more affordable. Reverse splits decrease share count and increase price (2:1, 5:1). Companies do this to boost share price above exchange minimums or improve perception.
Do I need to do anything when my stock splits?
No action needed. Your broker automatically adjusts your holdings. You'll see more (or fewer) shares at a proportionally adjusted price. Just track your adjusted cost basis for tax purposes.
Are stock splits taxable?
No. Stock splits are not taxable events. You only pay tax when you sell shares and realize a gain or loss. Just keep records of your adjusted cost basis for future tax calculations.