Reverse Stock Split Calculator - Calculator Academy

Reviewed By: Scott Hickam (MBA, Finance)

Enter the current stock price, the number of shares owned, and the stock split ratio into the calculator to determine the new price and shares owned.

Reverse Stock Split Formula

A reverse stock split consolidates multiple old shares into fewer new shares while proportionally increasing the price per share. For a 1-for-n reverse split, every n old shares become 1 new share.

New\ Shares = \frac{Old\ Shares}{n}

New\ Price = Old\ Price \times n

Old\ Shares \times Old\ Price \approx New\ Shares \times New\ Price

The calculator is designed around the standard reverse split convention where n is the denominator in a 1-for-n split. That means:

1-for-2: 2 old shares become 1 new share
1-for-5: 5 old shares become 1 new share
1-for-10: 10 old shares become 1 new share

What Each Value Means

Current Number of Shares = the shares owned before the reverse split
Reverse Split Ratio = the split factor n in a 1-for-n transaction
New Number of Shares = shares owned after the consolidation
Current Stock Price = pre-split market price per share
New Stock Price = theoretical post-split price per share before market movement

How to Use the Reverse Stock Split Calculator

Enter your current number of shares.
Select the reverse split ratio from the list.
Enter the current stock price if you want the adjusted post-split price.
Read the outputs for new shares and new stock price.

If you only know the ratio and current share count, the calculator can estimate the new share total. If you also know the current stock price, it can estimate the theoretical new price immediately after the reverse split.

Quick Reverse Split Reference

Reverse Split	Share Count After Split	Price After Split	Simple Interpretation
1-for-2	50% of prior shares	2 times prior price	Every 2 shares become 1
1-for-5	20% of prior shares	5 times prior price	Every 5 shares become 1
1-for-10	10% of prior shares	10 times prior price	Every 10 shares become 1
1-for-20	5% of prior shares	20 times prior price	Every 20 shares become 1
1-for-50	2% of prior shares	50 times prior price	Every 50 shares become 1
1-for-100	1% of prior shares	100 times prior price	Every 100 shares become 1

Examples

Example 1: An investor owns 750 shares priced at 0.48 each, and the company announces a 1-for-15 reverse split.

New\ Shares = \frac{750}{15} = 50

New\ Price = 0.48 \times 15 = 7.20

Pre\text{-}Split\ Value = 750 \times 0.48 = 360

Post\text{-}Split\ Value = 50 \times 7.20 = 360

Example 2: An investor owns 125 shares at 0.90 each in a 1-for-8 reverse split.

New\ Shares = \frac{125}{8} = 15.625

New\ Price = 0.90 \times 8 = 7.20

Because share counts may not divide evenly, the investor may receive 15 whole shares plus cash in lieu of the fractional 0.625 share, depending on the company and broker handling rules.

What Changes in a Reverse Stock Split

The number of shares owned decreases.
The price per share increases by the same factor.
The company’s shares outstanding decrease proportionally.
Your cost basis per share usually increases by the same split factor, while total cost basis generally stays the same.

New\ Cost\ Basis\ Per\ Share = Old\ Cost\ Basis\ Per\ Share \times n

What Usually Does Not Change

Your theoretical total position value immediately after the split
The company’s underlying business fundamentals
The economic ownership percentage of each shareholder, aside from fractional-share treatment

A reverse split changes the structure of the shares, not the fundamental value of the business by itself. Market sentiment, liquidity changes, and post-announcement trading can still cause the stock price to move after the split becomes effective.

Why Companies Use Reverse Stock Splits

To raise the share price after a prolonged decline
To reduce an unusually large share count
To improve how the stock appears on a per-share basis
To meet exchange or corporate governance requirements tied to share price

Important Limitation of Any Reverse Split Calculator

This calculator gives the mathematical adjustment from the split ratio. It does not predict:

future stock performance,
investor reaction,
cash paid for fractional shares,
broker-specific processing details, or
changes in value caused by trading after the split.

Common Questions

Do you lose money in a reverse stock split?

Not automatically. Immediately after the split, your share count is lower, but the per-share price is higher by the same proportion. Your theoretical holding value is usually unchanged before market trading and fractional-share treatment are considered.

Is a reverse split the same as a regular stock split?

No. A regular stock split increases the number of shares and lowers the price per share. A reverse stock split does the opposite: it reduces shares and increases the price per share.

What happens if my shares do not divide evenly?

You may end up with a fractional share. In many cases, fractional positions are cashed out rather than left as partial shares, but the exact treatment depends on the corporate action terms and brokerage process.

How should I enter the ratio?

For a 1-for-10 reverse split, use 10 as the split factor. For a 1-for-25 reverse split, use 25.