Understanding the effect of a stock split or a reverse stock split on your personal holdings can sometimes feel a bit confusing. When a company announces such an event, investors often wonder how it will precisely affect the number of shares they own, the price per share, and ultimately, the total value of their investment. While the overall value of your investment theoretically remains the same immediately after a split, the mechanics of how your shares and their individual price points change are crucial for portfolio management, future investment decisions, and accurate record-keeping. The Stock Split & Reverse Split Impact Calculator on WorkTool.com is designed to demystify this process, providing a clear and instant view of how these corporate actions will reshape your portfolio.

This easy-to-use calculator lets you input your current pre-split holdings with just a few details. You’ll start by entering the number of shares you currently own and the current price per share. The tool automatically calculates your pre-split total value, giving you a baseline. The core power of this calculator lies in its ability to simulate both types of splits: a forward stock split and a reverse stock split. For a forward split, like a common 2-for-1 or 3-for-1, your single share splits into multiple shares, and the price per share adjusts downwards proportionately. For a reverse stock split, such as a 1-for-5 or 1-for-10, multiple existing shares consolidate into a single new share, and the price per share adjusts upwards.

You simply select the “Split Type” and then define the “Ratio From” and “Ratio To” based on the company’s announced split terms. For instance, if a company announces a 2-for-1 forward split, you would enter ‘1’ for the “From” ratio and ‘2’ for the “To” ratio. If it’s a 1-for-5 reverse split, you’d enter ‘5’ for “From” and ‘1’ for “To.” With these simple inputs, the calculator instantly determines your new number of shares and the new price per share after the split, along with the post-split total value of your holdings. This immediate calculation removes any guesswork, allowing you to accurately anticipate changes to your portfolio structure.

Knowing the exact impact of a split helps in several ways. It ensures you can update your personal investment records correctly, understand the new cost basis per share, and avoid any surprises when your brokerage account reflects the changes. For example, if you own 100 shares of a company trading at $150, and they announce a 2-for-1 split, the calculator will quickly show you that you will then own 200 shares at approximately $75 each, with your total value remaining $15,000. Conversely, if it’s a 1-for-10 reverse split, you’d see your 100 shares become 10 shares, each valued at $1500, preserving your initial $15,000 total. The Stock Split & Reverse Split Impact Calculator on WorkTool.com simplifies this critical aspect of corporate finance, offering a clear and precise answer to how these events directly affect your investment. It’s a practical and straightforward resource for any investor managing their stock portfolio.