Stock Split Calculator
Calculate how a stock split affects your shares and price per share.
Your Holdings
Number of Shares Owned
shares
Current Price Per Share
$
Split Ratio
Example: A 4-for-1 split means you get 4 shares for every 1 share you own
Split Results
Forward Split
Before Split
shares @ $500
After Split
shares @ $125
Split Ratio
4:1
Share Multiplier
4x
New Shares Added
Price Change
-75%
Total Value (Unchanged)
Before Split
$50,000
After Split
$50,000
Your Position Value
$50,000
Adjusted Cost Basis (if applicable)
Metric
Before
After
Cost Per Share
$500.00
$125.00
Total Shares
100
400
What is a Stock Split?
A stock split divides existing shares into multiple new shares. While the number of shares increases, the total value of your holdings remains the same—each share is simply worth proportionally less.
New Shares = Old Shares × (Split Ratio)
New Price = Old Price ÷ (Split Ratio)
Total Value = Unchanged
New Price = Old Price ÷ (Split Ratio)
Total Value = Unchanged
For example, in a 4-for-1 split, if you owned 100 shares at $400 each ($40,000 total), you’d now own 400 shares at $100 each (still $40,000 total).
Forward Split vs Reverse Split
Forward Split (e.g., 4:1): Increases share count, decreases price per share. Companies do this to make shares more affordable and increase liquidity.
Reverse Split (e.g., 1:10): Decreases share count, increases price per share. Often done to meet exchange listing requirements or improve perception of a struggling stock.
Type
Ratio
100 shares @ $50
Forward
2:1
200 @ $25
Forward
4:1
400 @ $12.50
Reverse
1:5
20 @ $250
Reverse
1:10
10 @ $500
Famous Stock Splits
Company
Year
Ratio
Apple
2020
4:1
Tesla
2022
3:1
Amazon
2022
20:1
Google
2022
20:1
Nvidia
2024
10:1
What You Need to Know
- No action required: Splits happen automatically in your brokerage account.
- Cost basis adjusts: Your cost per share is recalculated, but total cost basis stays the same.
- Options adjust too: Strike prices and contract sizes adjust proportionally.
- Fractional shares: If you’d receive partial shares, brokers may round or pay cash.
- Tax neutral: A split alone doesn’t trigger a taxable event.
- Practical tip: When a split is announced, don’t rush to buy or sell. The split itself doesn’t change the company’s value—your investment strategy should remain the same.
Common Misconceptions
- “Splits make you richer”: False. Your total investment value remains exactly the same immediately after a split.
- “Splits always boost the stock”: Not guaranteed. While splits can increase liquidity and attract retail investors, long-term performance depends on company fundamentals.
- “Reverse splits are always bad”: Not necessarily. While often a red flag, some companies do it for legitimate reasons like meeting exchange requirements.
- “You should buy before a split”: Mathematically, it doesn’t matter. You’re getting the same value either way.