How this calculator works
A stock split changes the number of shares you hold and the price per share, but not the total value of your holding. If a company announces a split ratio of from : to (for example, 1:5), each existing share becomes to/from new shares.
New shares = Current shares × (to ÷ from)
New price per share = Current price × (from ÷ to)
Multiply new shares by the new price and you get back exactly what you started with — your total holding value is unchanged by the split itself. Only your broker statement's share count and per-share price change.
Worked example
Say you hold 100 shares at ₹500 each — a total value of ₹50,000. If the company announces a 1:5 split, your new share count is 100 × (5 ÷ 1) = 500 shares, and the new price per share is ₹500 × (1 ÷ 5) = ₹100. Check the total: 500 × ₹100 = ₹50,000 — exactly what you had before the split.
Shunya's CA team handles company registration, GST, and tax filings — not stock trading advice. If you're a founder or business needing compliance help, we're here for that.
Talk to a CA →Does a stock split change my total investment value?
No — only the number of shares and the per-share price change, not your total holding value. A split just divides the same value across more shares at a proportionally lower price.
Why do companies split their stock?
Commonly to improve liquidity and make shares more affordable per unit for retail investors. It doesn't change the company's fundamentals, revenue, or earnings — only how the same value is divided among shares.
Is a stock split taxable?
No — a stock split is not a sale or transfer, so no capital gains tax event occurs at the time of a split. Your original cost basis simply gets spread across the new, larger number of shares.
This tool is for quick estimation only and is not a substitute for professional financial or tax advice. For your specific situation, consult a practicing CA or financial advisor.
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