Stock Split & Reverse Split Calculator
New Shares:
New Stock Price: 0
Total Shares After Adjustments:
Investors often encounter stock splits and reverse stock splits, which can impact their total number of shares and stock price. Our Stock Split & Reverse Split Calculator helps you quickly determine how your shares and stock price will adjust based on the announced split ratio. Whether a company increases the number of shares through a stock split or consolidates shares through a reverse stock split, this tool provides accurate, real-time calculations.
What is a Stock Split?
A stock split is when a company divides its existing shares into multiple new shares to make them more affordable for investors. However, the total value of the investment remains the same because the stock price adjusts accordingly.
How Stock Split Works!
- If a company announces a 1:1 split, the number of shares doubles, and the price per share halves.
- In a 1:5 split, shareholders receive 1 additional share for every 5 shares owned, meaning they now have 1.2 times their original shares, and the stock price is adjusted accordingly.
Example of a Stock Split
| Before Split | After 1:5 Split |
|---|---|
| Shares: 100,000 | Shares: 120,000 |
| Price: ₹100 | Price: ₹83.33 |
What is a Reverse Stock Split?
A reverse stock split is the opposite of a stock split. Instead of increasing shares, a company consolidates multiple shares into one, reducing the total number of outstanding shares and increasing the stock price proportionally. Companies often use reverse stock splits to boost share prices and maintain listing requirements.
How Reverse Stock Split Works!
- In a 1:4 reverse split, every 4 shares become 1, reducing the total shares to one-fourth and increasing the stock price by 4 times.
Example of a Reverse Stock Split
| Before Reverse Split | After 1:4 Reverse Split |
|---|---|
| Shares: 120,000 | Shares: 30,000 |
| Price: ₹83.33 | Price: ₹333.33 |
Key Features of Our Calculator
- Real-time calculations – Get instant results as you input values.
- Handles both stock splits & reverse splits – It can work on both stock splits and reverse stock splits simultaneously.
- Automatic price adjustment – Ensures price per share is calculated accurately.
- User-friendly & mobile-responsive – Works smoothly on all devices.
- Copy & Reset options – Easily copy results or reset inputs for new calculations.
Try Calculator A2Z’s Right Issue & Bonus Share Calculator
How to Use the Stock Split & Reverse Split Calculator
- Enter your current number of shares – This is the total number of shares you currently hold.
- Enter your current stock price – The price per share before any adjustments.
- Enter the stock split ratio – If the company announces a 1:5 split, enter 1:5.
- Enter the reverse stock split ratio (if applicable) – If the company announces a 1:4 reverse split, enter 1:4.
- View the results – The calculator will show:
- Total new shares after adjustment
- New stock price after split/reverse split
- Additional or reduced shares. This will be the net value after both the stock split and reverse stock split (if you have entered both).
- Copy or reset – Use the copy button to save results or reset to start a new calculation.
Frequently Asked Questions (FAQs)
1. Does a stock split affect my total investment value?
No, a stock split does not change the total investment value. If you had ₹1,00,000 worth of shares before the split, the value remains the same after the split; only the number of shares and price per share change.
2. What happens if both a stock split and a reverse stock split occur?
The calculator correctly applies both changes in sequence. First, it increases shares and adjusts the price based on the stock split, then reduces shares and increases the price accordingly for the reverse stock split.
3. Why do companies perform stock splits?
Companies split stocks to make them more affordable for investors and improve liquidity (easy buy and sell) in the market.
4. Why do companies perform reverse stock splits?
Reverse stock splits are done to increase share prices, often to meet stock exchange listing requirements or improve the stock’s perceived value.
5. Can I use this calculator for multiple stock splits?
Yes! You can enter multiple stock splits and reverse splits sequentially, and the calculator will adjust the shares and price accordingly.