Stock Split Calculator 2025

Calculate your new share count and price after stock splits instantly. Our free, mobile-friendly stock split calculator supports all common split ratios including 2:1, 3:1, 5:1, 10:1 splits and reverse stock splits. Perfect for investors tracking portfolio changes after corporate actions.

How to Use This Stock Split Calculator

Step-by-step guide:

  1. Enter your current number of shares
  2. Input the current stock price per share
  3. Select the split ratio (e.g., 2:1, 3:1, 5:1)
  4. Check "Reverse Stock Split" if applicable
  5. Click "Calculate Stock Split" to see results
💡 Pro Tip: Stock splits don't change your total investment value - they only adjust the number of shares and price per share proportionally.

Real Stock Split Examples

Tesla 5:1 Split (2020)

Before: 100 shares at $2,200 each

After: 500 shares at $440 each

Total Value: $220,000 (unchanged)

Apple 4:1 Split (2020)

Before: 50 shares at $400 each

After: 200 shares at $100 each

Total Value: $20,000 (unchanged)

NVIDIA 4:1 Split (2021)

Before: 25 shares at $600 each

After: 100 shares at $150 each

Total Value: $15,000 (unchanged)

Understanding Stock Splits: Complete Guide

What is a Stock Split?

A stock split is a corporate action where a company divides its existing shares into multiple shares. The most common ratios are 2:1, 3:1, and 5:1 splits. When a stock splits, the number of shares increases while the price per share decreases proportionally, keeping the total market value unchanged.

Types of Stock Splits

  • 2:1 Split: Each share becomes 2 shares, price halved
  • 3:1 Split: Each share becomes 3 shares, price reduced by 1/3
  • 5:1 Split: Each share becomes 5 shares, price reduced by 1/5
  • 3:2 Split: Every 2 shares become 3 shares
  • Reverse Split: Multiple shares become fewer shares (e.g., 1:10)

Why Do Companies Split Their Stock?

Companies typically split their stock for several strategic reasons:

  • Improve Liquidity: Lower prices attract more retail investors
  • Psychological Appeal: $50 per share seems more affordable than $500
  • Increase Trading Volume: More accessible pricing increases market activity
  • Maintain Price Range: Keep stock price within a "normal" trading range
  • Signal Confidence: Stock splits often indicate management's positive outlook

Stock Split vs. Stock Dividend

Stock Split: Increases shares outstanding, reduces price proportionally

Stock Dividend: Issues additional shares as dividend, similar effect but different accounting treatment

Reverse Stock Splits Explained

A reverse stock split consolidates multiple shares into fewer shares at a higher price. For example, in a 1:10 reverse split, every 10 shares become 1 share, and the price increases 10-fold.

When Do Companies Use Reverse Splits?

  • Exchange Compliance: Meet minimum share price requirements
  • Improve Perception: Higher share prices may appear more prestigious
  • Reduce Volatility: Higher-priced shares often have less percentage volatility
  • Cost Reduction: Fewer shareholders reduce administrative costs
⚠️ Important: Reverse splits are often viewed negatively by investors as they may signal financial distress.

Tax Implications of Stock Splits

Stock splits generally have no immediate tax consequences for investors:

  • No Taxable Event: Stock splits don't trigger capital gains or losses
  • Adjusted Cost Basis: Your cost basis per share decreases proportionally
  • Holding Period: The holding period for all shares remains the same
  • Record Keeping: Update your records to reflect new share count and basis

Example: You bought 100 shares at $200 each ($20,000 total). After a 2:1 split, you own 200 shares with a cost basis of $100 each (still $20,000 total).

Frequently Asked Questions

Does a stock split change the value of my investment?

No, stock splits don't change your total investment value. While you'll have more shares at a lower price per share, your total portfolio value remains exactly the same immediately after the split.

How do stock splits affect dividends?

Dividend payments are typically adjusted proportionally. If you received $2 per share before a 2:1 split, you'll receive $1 per share after the split, but you'll have twice as many shares, so your total dividend income remains the same.

When do stock splits take effect?

Stock splits have three important dates: announcement date (when declared), record date (determines eligible shareholders), and distribution date (when new shares appear in accounts). The stock typically begins trading at the adjusted price on the distribution date.

Can fractional shares result from stock splits?

Yes, especially with odd ratios like 3:2 splits. Most brokers handle fractional shares automatically, but some may cash out small fractional positions.

Do all shareholders receive the same split ratio?

Yes, all shareholders of record receive the same split ratio regardless of how many shares they own. The split applies proportionally to all outstanding shares.

How do stock splits affect options and warrants?

Options contracts are adjusted for stock splits. The number of contracts and strike prices are modified to maintain the same total value and coverage as before the split.

Are stock splits good or bad for investors?

Stock splits are generally neutral events. They don't create or destroy value but may improve liquidity and accessibility. However, they can signal management confidence in future growth.

Historical Stock Split Data

Many successful companies have split their stock multiple times:

  • Apple (AAPL): 5 splits since 1987, including 7:1 (2014) and 4:1 (2020)
  • Microsoft (MSFT): 9 splits since 1987, mostly 2:1 ratios
  • Tesla (TSLA): 5:1 split in 2020, 3:1 split in 2022
  • Amazon (AMZN): 20:1 split in 2022, first split since 1999
  • Google (GOOGL): 20:1 split in 2022
📈 Market Insight: Companies trading above $1,000 per share often consider splits to improve accessibility to retail investors.