Shares and Dividends Calculator
Work out the number of shares, dividend income and percentage return from the face value, market value and dividend rate.
About the Shares and Dividends Calculator
Every share has a face value (also called nominal or par value) printed on it, and a market value that it trades at. A share is at a premium when its market value is above its face value, and at a discount when it's below.
The dividend is declared as a percentage of the face value, but you buy shares at the market value. That's why the return on your money, income ÷ investment, is usually different from the dividend rate.
The formula
Income = number of shares × (dividend % × face value)
- Number of shares
- investment ÷ market value
- Return %
- income ÷ investment × 100
Worked example
₹15,000 in ₹10 shares at ₹25, 12% dividend
- Shares = 15,000 ÷ 25 = 600
- Dividend per share = 12% of ₹10 = ₹1.20
- Income = 600 × 1.20 = ₹720; return = 4.8%
Questions people ask
Why isn't the return 12%?
The 12% is of the face value (₹10), but you paid ₹25 for each share.
Is this how real dividends work?
Indian companies still declare dividends as a percentage of face value, though investors usually compare the dividend yield on the market price.