Calculate new share count, adjusted price per share, and total position value after a forward or reverse stock split.
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A stock split changes the number of shares outstanding and the price per share in proportion, without affecting the total value of an investor's position. This calculator shows the post-split share count and adjusted price for any forward or reverse split ratio.
In a forward split, a company increases the number of shares while reducing the price proportionally. A 3-for-1 split turns 100 shares at 150 into 300 shares at 50. Total value remains 15,000.
In a reverse split, the company reduces shares and increases the price. A 1-for-5 reverse split turns 1,000 shares at 2 into 200 shares at 10. Companies use reverse splits to meet exchange listing requirements or improve perceived value.
The split ratio determines the multiplier for shares and the divisor for price.
New Shares = Current Shares × (New / Old)
New Price = Current Price × (Old / New). Total value is preserved: New Shares × New Price = Current Shares × Current Price.
An investor holds 100 shares at 150 each. The company announces a 3:1 split. New shares = 100 × 3 = 300. New price = 150 / 3 = 50. Position value = 15,000 before and after.
Does not account for fractional shares (some brokers pay cash in lieu). Does not model tax implications of reverse splits or the market price impact of split announcements.
Frequently asked questions
No. A stock split is purely cosmetic — you own more shares at a lower price (or fewer shares at a higher price for a reverse split). Your total position value does not change at the moment of the split.
Forward splits make shares more affordable and accessible to retail investors, potentially increasing liquidity. Reverse splits raise the share price to meet exchange listing minimums or to attract institutional investors who avoid low-priced stocks.
The dividend per share is adjusted proportionally. If a company paid 1 per share and does a 2:1 split, the new dividend is 0.50 per share — but you hold twice as many shares, so total dividend income is unchanged.
In most jurisdictions, stock splits are not taxable events. Your cost basis per share is adjusted proportionally. However, cash received for fractional shares may be taxable. Consult a tax professional for your specific situation.
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