The stock profit calculator computes your actual gain or loss from a stock trade, accounting for the buy price, sell price, number of shares, brokerage commissions, and estimated capital gains tax. It shows both absolute profit and percentage return, plus annualized ROI for comparing investments held for different periods.
What this calculator does
Stock profit = (Sell Price × Shares − Sell Commission) − (Buy Price × Shares + Buy Commission). This gives your gross profit. After capital gains tax, the remaining amount is your net profit.
How it works
Capital gains tax depends on how long you held the stock. Short-term (under 1 year): taxed as ordinary income (10-37%). Long-term (over 1 year): taxed at preferential rates (0%, 15%, or 20%). This difference can significantly impact your net return.
Annualized return normalizes performance across different holding periods. A 50% return in 1 year is much better than 50% over 5 years (equivalent to 8.4% annualized). Always compare annualized returns when evaluating different investments.
When to use this calculator
Reach for this tool whenever a financial decision hinges on this type of calculation. Small differences in rate or term become large differences in total cost or return over multi-year horizons — differences that only become visible when you run the actual numbers.
Common mistakes
Many financial calculation errors stem from omitting ancillary costs: fees, taxes, insurance, or maintenance. The headline figure (interest rate, monthly payment) is rarely the complete cost of a financial product.
Real-world scenarios
A small business owner compares two financing options for new equipment: a 5-year bank loan at 5.2% versus a leasing arrangement with a monthly fee. The calculator translates both into a total cost figure, making the comparison straightforward.
Formula
Stock Profit Formula
Net Profit = (Sell Price − Buy Price) × Shares − Buy Commission − Sell Commission − Capital Gains Tax
ROI = Net Profit ÷ Total Cost × 100. Annualized ROI = ((1 + ROI)^(1/years) − 1) × 100.
Worked example
Bought 100 shares of AAPL at
50, sold at
95 after 18 months, $0 commission.
Investment cost: 100 ×
50 =
5,000
Sale proceeds: 100 ×
95 =
9,500
Gross profit:
9,500 −
5,000 = $4,500 (30% return)
Long-term capital gains tax (15%): $4,500 × 15% = $675
Net profit: $4,500 − $675 = $3,825
Result: Net profit: $3,825 (25.5% net return). Annualized return: 16.6% per year. If held < 1 year at 24% bracket: $3,420 net (22.8%).
Frequently asked questions
How do I calculate stock profit?
Profit = (Sell Price − Buy Price) × Number of Shares − Commissions. Then subtract capital gains tax for net profit.
What is the capital gains tax rate?
Short-term (held < 1 year): 10-37% based on income bracket. Long-term (held > 1 year): 0% (income under $47,025), 15% ($47,025-$518,900), or 20% (above $518,900) for single filers.
What is annualized return?
Annualized return converts any holding period to a yearly equivalent. Formula: ((1 + total return)^(1/years) − 1) × 100. This lets you compare a 2-year and a 5-year investment fairly.
Should I factor in dividends?
Yes. Total return includes both price appreciation and dividends received. Use our dividend calculator for detailed dividend income projections.