Stock Profit Calculator
Calculate the profit or loss from your stock trades, including commissions.
Understanding Stock Profit
This calculator helps you determine the profit or loss from a stock trade. By entering your buy price, sell price, number of shares, and any commissions, you can get a clear picture of your investment's performance.
Key Factors Explained
- Buy Price: The price per share you paid when you purchased the stock.
- Sell Price: The price per share you received when you sold the stock.
- Number of Shares: The total number of shares you traded.
- Commissions: Fees paid to a brokerage for executing trades. It's crucial to include both buy and sell commissions for an accurate calculation, as they reduce your net profit.
The Formula
The calculation for your net profit or loss is straightforward:
Total Buy Cost = (Buy Price × Shares) + Buy Commission
Total Sell Value = (Sell Price × Shares) - Sell Commission
Profit/Loss = Total Sell Value - Total Buy Cost
Frequently Asked Questions (FAQ)
How are stock profits taxed?
Profits from selling stocks are subject to capital gains tax. The tax rate depends on how long you held the stock. Holdings of one year or less are typically taxed at a higher short-term rate, while holdings of more than one year are taxed at a lower long-term rate.
What is a 'wash sale'?
The wash-sale rule prevents you from claiming a tax loss on a security if you buy the same or a "substantially identical" security within 30 days before or after the sale. It's designed to stop investors from selling at a loss for tax purposes, only to immediately buy back in.
What is Return on Investment (ROI)?
ROI measures the profitability of an investment as a percentage. It's calculated by dividing the net profit by the total cost of the investment. It's a useful metric for comparing the performance of different investments.
For a more in-depth guide, read our detailed article on this topic.