Free stock split calculator — compute new share count and adjusted price per share for forward and reverse stock splits with no change in total value.
A stock split changes the number of outstanding shares and the price per share while keeping total market value constant. In a forward split (e.g., 3-for-1), each share becomes three shares at one-third the price. In a reverse split (e.g., 1-for-5), five shares become one at five times the price. Splits do not create or destroy value — they simply adjust the share count.
Our Stock Split Calculator handles both forward and reverse splits. Enter your current shares, price, and the split ratio to see the new share count, adjusted price, and confirmation that total value is unchanged. It also adjusts cost basis per share for tax reporting. After a split, your new share count increases while the price per share decreases proportionally, keeping total investment value the same. Reverse splits work in the opposite direction, consolidating shares into fewer units at a higher price. Both scenarios require accurate cost basis tracking for capital gains calculations.
Stock splits can be confusing, especially when updating brokerage records, tax filings, or spreadsheet models. This calculator eliminates arithmetic errors by instantly showing the adjusted figures. It is particularly useful for reverse splits, which can produce fractional shares, and for verifying that your broker applied the split correctly. Accurate records prevent costly tax errors when you eventually sell.
Forward Split: New Shares = Old Shares x Ratio. New Price = Old Price / Ratio. Reverse Split: New Shares = Old Shares / Ratio. New Price = Old Price x Ratio. Total Value = Shares x Price (unchanged).
Result: 300 shares at $100.00
You own 100 shares at $300 each ($30,000 total). After a 3-for-1 forward split, you have 300 shares at $100 each. Total value remains $30,000. Your cost basis per share is also divided by 3, so if you originally paid $150/share, your new basis is $50/share.
Stock splits are cosmetic changes to share structure that do not alter a company's fundamentals, market capitalization, or an investor's proportional ownership. Companies split shares to make the stock more accessible to retail investors by lowering the per-share price. Apple, Tesla, Amazon, and Google have all executed high-profile forward splits in recent years.
Forward splits (2-for-1, 3-for-1, 4-for-1) are generally viewed as positive signals because they usually occur when a stock has appreciated significantly. Reverse splits (1-for-5, 1-for-10) are more ambiguous. While some companies use them for legitimate reasons like meeting exchange listing requirements, others do so to mask a declining stock price. Context matters when interpreting a reverse split.
When a stock splits, options contracts are adjusted accordingly. In a 2-for-1 split, one contract at a $200 strike becomes two contracts at a $100 strike. The total notional value remains the same. The Options Clearing Corporation (OCC) handles the adjustment automatically, but it is good practice to verify your positions after any corporate action.
No. A stock split changes the number of shares and the price per share in equal and opposite proportions. Your total investment value remains exactly the same immediately after the split. Think of it as exchanging a $20 bill for two $10 bills — different denominations, same value.
A reverse split reduces the number of outstanding shares and increases the price proportionally. For example, in a 1-for-5 reverse split, every 5 shares become 1 share at 5 times the price. Companies use reverse splits to boost share price above exchange minimum listing requirements or to appear more "prestigious" to institutional investors.
No. A stock split does not create a taxable event because no gain or loss is realized. Your total cost basis remains the same — it is simply spread over more (or fewer) shares. You adjust the per-share basis but do not report any income or loss to the IRS at the time of the split.
Divide your original cost basis per share by the split ratio for a forward split, or multiply by the ratio for a reverse split. For example, if you paid $200/share and a 2-for-1 split occurs, your new basis is $100/share. Your total basis across all shares remains unchanged.
If the reverse split creates a fractional share (e.g., you own 7 shares in a 1-for-5 split), the broker typically sells the fractional portion at the market price and credits your account with cash. This fractional-share cash-out is a taxable event based on your cost basis for those partial shares.
The dividend per share is adjusted proportionally. If a company paid $1/share before a 2-for-1 split, it will typically pay $0.50/share afterward. Your total dividend income remains the same because you own twice as many shares at half the dividend rate.