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Bonus Share Adjustment Calculator

Work out bonus share adjustment instantly with clear inputs, formula shown and shareable results.

About Bonus Share Adjustment Calculator

A bonus issue capitalises reserves into new shares handed out free in a fixed ratio. Total value is unchanged, so the price adjusts down in proportion — the mechanics are those of a split, with a different accounting entry behind it.

Formula

Bonus adjustment

New shares = held × a/b; adjusted price = held × price / total shares

Worked example

With the default values below, Bonus Share Adjustment Calculator returns Total Shares After The Bonus of 450. Change any input above and every figure here is recalculated in your browser.

Inputs used

Shares Heldaccepts 1–100,000,000
300
Price Before The Bonusminimum 0
900
Bonus Shares Receivedaccepts 1–20
1
For Every This Many Heldaccepts 1–20
2

Results

Total Shares After The Bonus
450
Adjusted Price
$600.0000
Bonus Shares Received
150
Value Of The Holding
$270,000.00

Step by step

  1. 1Values used
  2. 2Bonus adjustment
  3. 3Total Shares After The Bonus= 450
  4. 4Adjusted Price= 600.0000
  5. 5Bonus Shares Received= 150
  6. 6Value Of The Holding= 270,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Is a bonus issue a dividend?

No cash leaves the company. It moves reserves into share capital and gives you more shares of the same total worth.

How is the cost basis treated?

The original cost is spread over the enlarged holding, which lowers the cost per share for capital gains purposes.

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