Stock Profit Calculator
Calculate your stock trading profits and analyze investment performance with our free online calculator. Get accurate results for profit/loss, ROI, commission costs, and tax implications.
How to use:
- 1Enter the number of shares purchased
- 2Enter the purchase price per share and the selling price per share
- 3Enter the commission fees for buying and selling stocks
- 4Specify the capital gains tax rate (if applicable) and select the currency
- 5Click on the 'Calculate' button to see your profit projection
Calculation Parameters
Results
Visual Analysis
What is Stock Profit?
Stock profit is the financial gain realized from buying and selling shares in the stock market. It represents the difference between the selling price and purchase price of shares, minus associated costs such as commissions and taxes. This calculation helps investors evaluate their investment performance and make informed decisions.
Types of Stock Trading
- • Day Trading: Buying and selling within the same trading day
- • Swing Trading: Holding positions for several days to weeks
- • Position Trading: Long-term holding for months to years
- • Value Investing: Buying undervalued stocks for long-term gains
Risk and Return
Stocks are considered higher-risk investments compared to bonds, offering potential for greater returns but also increased volatility. The profit potential varies widely depending on market conditions, company performance, and investment strategy. While blue-chip stocks typically offer more stable returns, growth stocks may provide higher profit potential with increased risk.
Key Features
Principal Components
- Purchase Price
- Selling Price
- Number of Shares
- Trading Commissions
Market Factors
- Market Conditions
- Company Performance
- Industry Trends
- Economic Indicators
How to Calculate Stock Profit?
Calculating stock profit involves determining the difference between the selling and buying prices, while accounting for various costs such as commissions and taxes. The basic formula for calculating stock profit is as follows:
Total Revenue Formula:
Total Cost Formula:
Net Profit Formula:
Where:
- • = Number of shares
- • = Buy price per share
- • = Sell price per share
- • = Commission rates for buy/sell
- • = Fixed commission amounts for buy/sell
- • = Capital gains tax rate
- • = Total dividends received
- • = Holding period in years
Example Calculation:
Scenario: Buy 100 shares at $50/share, sell at $60/share
Commission: $5 for buy, $5 for sell
Tax Rate: 15%
Total Purchase Cost: 100 × $50 + $5 = $5,005
Total Sale Revenue: 100 × $60 - $5 = $5,995
Capital Gain: $5,995 - $5,005 = $990
Capital Gains Tax: $990 × 15% = $148.50
Net Profit: $990 - $148.50 = $841.50
Profit Rate: ($841.50 ÷ $5,005) × 100% = 16.81%
Investment Strategies & Tips
Risk Management
- • Set stop-loss orders to limit potential losses
- • Diversify your portfolio across different sectors
- • Never invest more than you can afford to lose
- • Consider the total cost of trading, including fees
Profit Optimization
- • Compare commission rates across brokers
- • Understand tax implications in your jurisdiction
- • Consider holding periods for tax advantages
- • Reinvest dividends for compound growth
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💡 Pro Tip
Consider commission fees and taxes in your calculations. Even small fees can significantly impact your profits over time.