Stock Split Calculator
Calculate how stock splits affect your shares, price, and cost basis. Supports forward splits, reverse splits, and multiple split calculations.
Stock Split Formula
📈 Forward Split Details
📊 Post-Split Position
After 2-for-1 Split
200 shares
@ $100.00 per share
Before Split
100 @ $200.00
$20,000.00
After Split
200 @ $100.00
$20,000.00
Cost Basis Analysis
💡 Note: Your total investment value ($20,000.00) remains unchanged after the split.
📜 Famous Stock Splits History
| Company | Split Ratio | Date | Pre-Split | Post-Split |
|---|---|---|---|---|
| Apple (AAPL) | 4-for-1 | Aug 2020 | $500 | $125 |
| Tesla (TSLA) | 5-for-1 | Aug 2020 | $2,213 | $443 |
| Tesla (TSLA) | 3-for-1 | Aug 2022 | $891 | $297 |
| NVIDIA (NVDA) | 10-for-1 | Jun 2024 | $1,200 | $120 |
| Amazon (AMZN) | 20-for-1 | Jun 2022 | $2,447 | $122 |
| Google (GOOGL) | 20-for-1 | Jul 2022 | $2,255 | $113 |
📈 Understanding Stock Splits
What is a Stock Split?
A stock split is a corporate action where a company divides its existing shares into multiple shares. While the number of shares increases, the total value of your investment remains unchanged because the price per share decreases proportionally. For example, in a 2-for-1 split, you'd have twice as many shares at half the price.
Why Do Companies Split Stocks?
Companies typically split their stock when share prices have risen significantly, making shares expensive for retail investors. A lower price per share increases accessibility and liquidity. NVIDIA's 10-for-1 split in 2024 brought shares from ~$1,200 to ~$120, making it more accessible to everyday investors and employees receiving stock compensation.
Forward vs. Reverse Splits
Forward splits (like 2-for-1) increase shares and are generally positive signals—companies do them when stock prices are high. Reverse splits (like 1-for-10) reduce shares and increase price, often done to meet minimum listing requirements. Reverse splits can be a warning sign of struggling companies, though not always—sometimes it's simply to meet institutional investment criteria.
📊 Quick Reference
2-for-1: 2× shares, ½ price
3-for-1: 3× shares, ⅓ price
4-for-1: 4× shares, ¼ price
1-for-10: 1/10 shares, 10× price
Total value always stays the same!
⚠️ Tax Note
Stock splits don't trigger taxable events. Your cost basis per share adjusts, but total cost basis stays the same. Only selling shares creates a taxable event.
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Frequently Asked Questions
To calculate a stock split, multiply your shares by the split ratio and divide the price by the same ratio. For a 2-for-1 split: New Shares = Old Shares × 2, New Price = Old Price ÷ 2. Example: 100 shares at $200 becomes 200 shares at $100. Your total investment value ($20,000) stays the same—only the number of shares and price per share change.
In a 3-for-2 split, you receive 3 shares for every 2 shares owned. Multiply shares by 1.5 (3÷2) and divide price by 1.5. Example: 100 shares at $150 → 150 shares at $100. Total value remains $15,000. This ratio is less common than 2-for-1 but achieves a more moderate price reduction while still increasing share count.
A 3-for-1 split triples your shares while dividing the price by 3. Formula: New Shares = Old Shares × 3, New Price = Old Price ÷ 3. Example: If you own 50 shares at $300, after the split you'll have 150 shares at $100 each. Total value stays at $15,000. Tesla did a 3-for-1 split in August 2022.
A reverse stock split reduces the number of shares while increasing the price proportionally. In a 1-for-10 reverse split, every 10 shares become 1 share at 10× the price. Example: 1,000 shares at $1 becomes 100 shares at $10. Companies do this to meet exchange listing requirements (minimum $1 price) or improve perception. Total value remains unchanged, though fractional shares may be cashed out.
Mathematically, it doesn't matter—your investment value is the same before and after a split. However, studies show stocks often outperform the market 12 months post-split (25-30% vs 10-12% for S&P 500). This may be due to increased accessibility attracting more buyers, or the split signaling management's confidence. The split itself doesn't create value; company fundamentals matter most.
Stock splits have few direct downsides for investors since your total value doesn't change. However: (1) Increased volatility from more retail trading, (2) No fundamental value creation—it's cosmetic, (3) Transaction costs if you sell fractional shares, (4) Potential psychological trap—lower price doesn't mean 'cheap.' Reverse splits often signal trouble, as companies use them to avoid delisting.
📈 Disclaimer: This calculator is for educational purposes only. Stock splits don't change the fundamental value of your investment. Consult a financial advisor for investment decisions.