Stock Split
Free online stock split calculator — calculate new share count and adjusted price after any split or reverse split. Enter shares, price, and ratio for instant results.
About This Calculator
The Stock Split Calculator helps investors quickly determine how a stock split or reverse stock split affects their holdings. Whether you own shares in a company announcing a forward split (like a 2-for-1 or 3-for-1) or a reverse split (like a 1-for-10), this calculator instantly shows your new share count, adjusted share price, and confirms that your total portfolio value remains unchanged.
A stock split divides each existing share into multiple shares, lowering the per-share price proportionally without changing the company's market capitalisation. The formula is simple: New Shares = Pre-Split Shares × (Split Ratio Factor) and New Price = Pre-Split Price / (Split Ratio Factor). For reverse splits, the share count decreases and the price increases by the same factor.
The calculator supports any forward ratio (e.g. 2:1, 3:2, 5:1) and any reverse ratio (e.g. 1:5, 1:10, 1:100). The split ratio is entered as X-for-Y, meaning you receive X new shares for every Y shares you currently own. A 3-for-2 split, for example, means 3 new shares replace every 2 old shares.
Regional Notes: Stock splits are common on exchanges worldwide — the NYSE, NASDAQ, NSE (India), BSE, LSE, and others. In India, high-priced stocks like MRF (trading above ₹100,000) often split to improve liquidity. In the US, companies like Apple, Tesla, and Amazon have executed stock splits to make shares more accessible. In the UK, companies on the FTSE similarly use splits. Tax treatment of splits is consistent globally — the cost basis is adjusted proportionally, not creating a taxable event.
Frequently Asked Questions
What is a stock split?
A stock split is a corporate action where a company increases its outstanding shares by dividing each existing share into multiple shares. The total value of your investment remains unchanged — the number of shares increases while the price per share decreases proportionally.
How do I calculate the new share price after a stock split?
Divide the pre-split share price by the split factor. For a 2-for-1 split, the split factor is 2, so the new price is the old price divided by 2. For example, a Rs 2,000 share becomes Rs 1,000 per share after a 2-for-1 split.
What is a reverse stock split?
A reverse stock split reduces the number of outstanding shares by combining multiple shares into one, increasing the share price proportionally. For example, in a 1-for-5 reverse split, every 5 shares become 1 share at 5 times the price.
Does a stock split change the total value of my investment?
No, a stock split does not change the total value of your investment. The share price adjusts proportionally to the split ratio, so your portfolio value remains exactly the same immediately after the split.
Why do companies do stock splits?
Companies typically split their stock when the share price has risen significantly, making shares more affordable for small investors. Lower prices can improve liquidity and attract more buyers. A stock split can also signal management confidence in future growth.
How does a stock split affect my cost basis for tax purposes?
Your total cost basis remains unchanged after a stock split. The cost per share is divided by the split factor, and the number of shares is multiplied by the split factor. For example, if you bought 100 shares at Rs 100 each (cost basis Rs 10,000) and a 2-for-1 split occurs, you now have 200 shares with a cost basis of Rs 50 each.
How do stock splits affect dividends?
The dividend per share decreases proportionally to the split ratio, but the total dividend payout remains the same. If a company pays Rs 10 per share annually and does a 2-for-1 split, the new dividend becomes Rs 5 per share, keeping your total annual dividend unchanged.
What happens to options contracts during a stock split?
Options contracts are adjusted to reflect the stock split. The strike price is divided by the split factor, and the number of contracts is multiplied by the split factor to maintain the same total notional value. For example, with a 2-for-1 split, one contract at a Rs 100 strike becomes two contracts at Rs 50.