Definitions
In plain terms
If a share rises by 5% and also pays a dividend worth 2% of the starting price, the simplified total return is about 7%.
Technical
A single-period total return combines comparable ending value and declared cash or security distributions relative to starting value, with explicit reinvestment, tax, FX, and timing rules.
Scope
Gross, net, security-level, portfolio, and index total-return conventions can differ.
Formula
R_total = (P1 - P0 + D) / P0R_{total}=(P_1-P_0+D)/P_0| Symbol | Meaning | Unit |
|---|---|---|
P0 | starting comparable price | currency |
P1 | ending comparable price | currency |
D | eligible distributions during the period | currency |
Output unit: decimal return
Examples
- A governed calculation records total return with its exact basis, effective time, source, and units.
Common misconceptions
- Total Return does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Related
Contrasts with
Where this concept is used
- PrimaryCash-Dividend Total-Return Adjustment: From Price Drop to Exact ReturnD02-F01-A03
- ImportantRights-Issue TERP AdjustmentD02-F02-A01
- ImportantSpin-Off Price Adjustment: Separate Parent Price from Distributed ValueD02-F02-A02
- ImportantStock-Dividend Adjustment: Convert Price and Quantity Bases Without Inventing ValueD02-F02-A03
- ImportantSpecial-Dividend Adjustment: Preserve Return Meaning Across the Ex-DateD02-F02-A04
- ImportantReturn-of-Capital Adjustment: Keep Price, Return, and Tax Views SeparateD02-F02-A05
- ImportantMerger Predecessor/Successor Mapping: Preserve Identity and Entitlements Without Inventing ContinuityD02-F03-A04
- ImportantDelisting Return Reconstruction: Separate Observed Proceeds from EstimatesD02-F03-A05
- PrimaryGross Total-Return IndexD03-F04-A02
- PrimaryNet Total-Return IndexD03-F04-A03
Evidence and governance
- S&P Dow Jones Indices Index Mathematics Methodology S&P Dow Jones Indices · first party methodology
Supports: preferred label, short definition, technical definition, formula
Limits: Authoritative for the provider's indices; conventions are not universal defaults for every index or security-level return series.
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: variant distinction
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published