Stock Split Calculator – Share Split Impact
Calculate share quantity and price after stock splits
Table of Contents
How to Use
- Enter the number of shares you currently own
- Enter the split ratio (e.g., 2:1 for a 2-for-1 split)
- Enter the current price per share
- Click calculate to see your post-split position
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 holdings remains the same because the price per share decreases proportionally.
Types of Stock Splits
| Type | Ratio Example | Effect |
|---|---|---|
| Forward Split | 2:1, 3:1, 4:1 | More shares at lower price |
| Reverse Split | 1:2, 1:5, 1:10 | Fewer shares at higher price |
| Common ratios | 2:1, 3:2, 4:1 | Most frequent split ratios |
Why Companies Split Their Stock
- Make shares more affordable to retail investors
- Increase stock liquidity and trading volume
- Signal confidence in future growth (forward splits)
- Meet exchange listing requirements (reverse splits)
- Psychological appeal of lower share prices
Famous Stock Splits
- Apple: 4:1 split in 2020, 7:1 in 2014, multiple 2:1 splits
- Tesla: 5:1 split in 2020, 3:1 split in 2022
- Amazon: 20:1 split in 2022
- Google (Alphabet): 20:1 split in 2022
- Nvidia: 4:1 split in 2021
Frequently Asked Questions
- Does a stock split change my investment value?
- No, a stock split does not change the total value of your investment. If you own $1,000 worth of stock before a 2:1 split, you still own $1,000 worth after—just with twice as many shares at half the price.
- What is a reverse stock split?
- A reverse split consolidates shares, reducing the number you own while increasing the price proportionally. A 1:10 reverse split means 10 shares become 1 share at 10x the price. Companies often do this to meet exchange minimum price requirements.
- Do I need to do anything when a stock splits?
- No, stock splits are automatic. Your broker will update your account to reflect the new share count and price. You don't need to take any action.
- What happens to fractional shares in a split?
- Most brokers now support fractional shares, so there's no issue. Some companies may pay cash for fractional shares or round to the nearest whole share. Check with your broker for their policy.