Stock Profit Calculator
Calculate your net profit or loss from stock trades. Enter buy price, sell price, number of shares, commission fees, and capital gains tax rate to instantly see your total return, ROI, and break-even price.
Stock Profit Calculator
Calculate your stock trading profits including commissions and capital gains tax
Frequently Asked Questions
How do you calculate stock profit?
Stock Profit = (Sell Price × Shares Sold) − (Buy Price × Shares Sold) − Total Commissions. For example, buying 100 shares at $50 and selling at $60 with $10 commission each way gives you ($60 × 100) − ($50 × 100) − $20 = $980 net profit. Always include both buy-side and sell-side commissions for an accurate result.
What is the stock profit formula?
The basic formula is: Net Profit = Total Sale Proceeds − Total Investment Cost. In detail: Net Profit = (Sell Price × Shares − Sell Commission) − (Buy Price × Shares + Buy Commission). To get after-tax profit, subtract capital gains tax from the net profit. The formula works for both full and partial share sales.
How do you calculate break-even share price?
Break-Even Price = (Total Investment + Sell Commission) ÷ Number of Shares Sold. For flat commissions, add both to the numerator. For percentage-based sell commissions, use Break-Even = Total Investment ÷ (Shares × (1 − Sell Commission %)). If you bought 100 shares at $50 with a $10 commission, your break-even is ($5,010) ÷ 100 = $50.10 before sell-side fees.
When should I sell my stock for profit?
Consider selling when your investment thesis has played out, the stock is overvalued relative to fundamentals, you need to rebalance your portfolio, or you have reached your target return. Use the 'profit-first' rule: decide your target profit percentage before buying and stick to it. Tax-loss harvesting before year-end can also offset gains. There is no universal answer — it depends on your strategy, time horizon, and tax situation.
Do I have to pay tax on stock profits?
Yes. In the US, stock profits are subject to capital gains tax. Short-term gains (held under 1 year) are taxed at your ordinary income rate — up to 37%. Long-term gains (held over 1 year) are taxed at 0%, 15%, or 20% depending on your taxable income. High earners may also owe the 3.8% Net Investment Income Tax. Use our calculator's tax field to see your after-tax profit.
What is the difference between short-term and long-term capital gains?
Short-term capital gains apply to stocks held for one year or less and are taxed at ordinary income rates (10%–37% in the US for 2026). Long-term capital gains apply to stocks held for more than one year and are taxed at preferential rates: 0% (income up to ~$48,350 single), 15% (up to ~$533,400), or 20% (above that). The holding period starts the day after purchase and ends on the sale date.
What is a good profit percentage for stocks?
The S&P 500 has returned roughly 10% per year on average over the past century (about 7% after inflation). A stock returning 15–20% annually is considered strong. For individual trades, many swing traders target 5–10% per position, while long-term investors aim for market-beating returns over multi-year periods. Any positive return that exceeds inflation and your cost of capital is considered 'good'.
How do brokerage commissions affect stock profit?
Commissions reduce your net profit directly. Each round-trip trade incurs a buy commission and a sell commission. If you pay $10 per trade, you lose $20 per round trip. For frequent traders or small positions, commissions can erode a significant portion of returns. Many US brokers now offer zero-commission stock trades, but options, international stocks, and some platforms still charge fees.
How do I calculate stock profit in Excel?
In Excel, use this formula: =((Sell_Price * Shares) - Sell_Commission) - ((Buy_Price * Shares) + Buy_Commission). For ROI: =Net_Profit / Total_Investment * 100. For break-even: =(Total_Investment + Sell_Commission) / Shares. You can also add a tax column: =MAX(0, Net_Profit) * Tax_Rate. Our online calculator does all of this automatically with a simpler interface.
How do I calculate profit on a short sale?
Short selling reverses the buy/sell order: you sell first, then buy to cover. Profit = (Short Sale Price − Cover Price) × Shares − Commissions − Borrowing Fees. If you short 100 shares at $80 and cover at $60, gross profit = ($80 − $60) × 100 = $2,000. Subtract commissions and any stock-borrow fees. Losses on short sales are theoretically unlimited because the stock price can rise indefinitely.
What is ROI in stock investing?
ROI (Return on Investment) measures your profit as a percentage of your initial investment. The formula is ROI = (Net Profit ÷ Total Investment) × 100. If you invested $10,000 and earned $1,500 profit, your ROI is 15%. ROI is useful for comparing different investments regardless of size. For time-adjusted comparison, use annualized ROI = ((1 + ROI)^(1/years) − 1) × 100.
How do dividends affect stock profit calculations?
Dividends add to your total return but are not captured in a simple buy/sell profit calculation. Total Return = Capital Gain + Dividends Received. If you bought at $50, sold at $55 (10% capital gain), and received $2 in dividends, your total return per share is $7 or 14%. Dividends are taxed separately — qualified dividends at long-term capital gains rates, ordinary dividends at income tax rates.
How to Calculate Stock Profit and Loss
Stock profit is the money you keep after selling shares for more than you paid. This calculator factors in purchase price, selling price, shares sold, brokerage commissions, and capital gains tax so you can see your true net return from any trade.
Stock Profit Formula
Every stock trade comes down to three numbers: what you paid, what you received, and what you lost to fees and taxes. Here are the core formulas:
Gross Profit
This ignores commissions and taxes.
Net Profit (Before Tax)
Where Total Investment = Buy Price × Shares + Buy Commission, and Total Sale = Sell Price × Shares − Sell Commission.
After-Tax Profit
Tax applies only when net profit is positive. Losses are not taxed (and may offset other gains).
Worked Example
- Buy 200 shares at $50 (Total cost: $10,000)
- Buy commission: $9.99 flat
- Sell all 200 shares at $65 (Gross proceeds: $13,000)
- Sell commission: $9.99 flat
- Total Investment: $10,000 + $9.99 = $10,009.99
- Total Sale: $13,000 − $9.99 = $12,990.01
- Net Profit: $12,990.01 − $10,009.99 = $2,980.02
- At 15% tax: $2,980.02 × 0.15 = $447.00 tax, leaving $2,533.02 after tax
Calculating Profit on Partial Sales
You do not always sell all your shares at once. When selling a portion of your position, the calculator allocates your buy-side costs proportionally to the shares being sold.
For percentage-based commissions, the allocation happens automatically because the commission is calculated on the number of shares sold. For flat-fee commissions, the full fee is charged per transaction regardless of how many shares you sell.
How Brokerage Commissions Affect Your Profit
Commissions are transaction fees charged by your broker on each trade. They come in two forms:
| Type | How It Works | Example |
|---|---|---|
| Percentage | A % of the trade value | 0.1% on a $10,000 trade = $10 |
| Flat fee | Fixed dollar amount per trade | $4.95 per trade regardless of size |
| Zero commission | No fee (common at US brokers) | $0 per stock trade at Fidelity, Schwab, etc. |
Percentage Commission Formula
Total Trade Cost
Tip: Even with zero-commission brokers, other costs like SEC fees, TAF fees, and bid-ask spreads still exist. These are typically very small but can matter for high-frequency or large-volume traders.
Understanding Capital Gains Tax on Stocks
When you sell stock at a profit in the United States, the IRS taxes the gain. The rate depends on how long you held the stock before selling.
Short-Term Capital Gains (Held 1 Year or Less)
Short-term gains are taxed as ordinary income. For the 2026 tax year, the federal rates are:
| Tax Rate | Single Filer Income | Married Filing Jointly |
|---|---|---|
| 10% | Up to $11,925 | Up to $23,850 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 |
| 37% | Over $626,350 | Over $751,600 |
Long-Term Capital Gains (Held More Than 1 Year)
Long-term gains are taxed at reduced rates for 2026:
| Tax Rate | Single Filer Income | Married Filing Jointly |
|---|---|---|
| 0% | Up to $48,350 | Up to $96,700 |
| 15% | $48,351 – $533,400 | $96,701 – $600,050 |
| 20% | Over $533,400 | Over $600,050 |
Net Investment Income Tax (NIIT): An additional 3.8% tax applies to net investment income for single filers earning over $200,000 or married couples earning over $250,000. This is on top of the regular capital gains rate.
Calculating Return on Investment (ROI)
ROI tells you how efficiently your capital was used, expressed as a percentage. It lets you compare investments of different sizes on equal footing.
ROI Formula (Before Tax)
ROI Formula (After Tax)
Annualized ROI
Use annualized ROI to compare investments held for different time periods.
How to Find Your Break-Even Price
The break-even price is the minimum sell price at which you recover your entire investment, including all commissions. Selling above break-even means profit; selling below means a loss.
Break-Even with Flat Sell Commission
Break-Even with Percentage Sell Commission
Example
You buy 100 shares at $50 with a $10 flat buy commission. Total Investment = $5,010. If the sell commission is also $10 flat: Break-Even = ($5,010 + $10) / 100 = $50.20. The stock must rise above $50.20 for you to turn a profit.
When Should You Sell Your Stocks?
There is no single answer, but a structured decision framework helps remove emotion from the process:
Reasons to Consider Selling
- Target reached: The stock has hit your pre-set price or ROI target
- Thesis broken: The reason you bought no longer applies (e.g., declining fundamentals)
- Rebalancing: A single position has grown too large relative to your portfolio
- Tax-loss harvesting: Selling a loser to offset gains before year-end
- Better opportunity: Capital is needed for a higher-conviction investment
Common Mistakes to Avoid
- Panic selling during a broad market correction
- Holding indefinitely without reviewing your thesis
- Ignoring tax implications (short-term vs long-term holding period)
- Selling winners too early while holding losers too long (disposition effect)
Stock Return Benchmarks: What Is a Good Return?
Understanding historical returns helps you set realistic expectations and evaluate your performance:
| Benchmark | Avg. Annual Return | Notes |
|---|---|---|
| S&P 500 (nominal) | ~10% | Long-term average since 1926 |
| S&P 500 (real, after inflation) | ~7% | Adjusted for ~3% average inflation |
| US bonds (aggregate) | ~5% | Bloomberg US Aggregate Bond Index |
| Savings account | ~4–5% | High-yield savings, 2024–2026 |
| Inflation (US CPI) | ~3% | Long-term historical average |
A stock returning 15–20% annually is considered strong. If your portfolio consistently beats the S&P 500 after fees and taxes, you are outperforming the majority of professional fund managers. Use our Compound Interest Calculator to project future growth.