Stock Profit Calculator

Frequently asked questions

How do I calculate stock profit?

Start by entering each purchase as a separate lot with the number of shares and buy price. The calculator computes a weighted-average cost basis across all lots. Enter the sell price per share, and optionally add commissions (flat fee or percentage), a capital-gains tax rate, and any dividends received. The basic formula is: Net Profit = (Sell Price − Avg Buy Price) × Total Shares − Buy Commission − Sell Commission − Tax + Dividends. Providing buy and sell dates lets the calculator show holding period, CAGR, and a short-term vs long-term tax hint.

What should I know about stock returns?

Absolute profit tells you the dollar amount gained or lost, but ROI (return on investment) puts that number in context relative to your cost. A $500 profit on a $5,000 investment (10% ROI) is very different from a $500 profit on a $50,000 investment (1% ROI). Commissions and taxes reduce real returns. A $10 round-trip commission on a $500 trade erodes 2% of returns before any market movement. For long-term investors, minimizing friction costs compounds significantly over time.

How do you calculate profit on a stock?

Profit = (Sell Price − Buy Price) × Shares − Commissions − Taxes + Dividends. This calculator handles all of those components, including multiple purchase lots at different prices.

What is ROI on a stock trade?

Return on Investment (ROI) is net profit divided by total cost, expressed as a percentage. If you invest $5,000 and sell for $6,000 after $20 in commissions, your net profit is $980 and ROI is 19.6%.

How do commissions affect stock profits?

Commissions increase your cost basis and reduce proceeds. For example, buying 100 shares at $50 with a $10 commission means your total cost is $5,010, and your break-even price rises to $50.10 per share.

What is a break-even price?

The minimum sell price per share needed to cover your total cost (purchase price + commissions). Selling above break-even means profit; selling below means a loss.

How much tax do I pay on stock profits?

In the US, short-term gains (held under 1 year) are taxed as ordinary income (10–37%). Long-term gains (held over 1 year) are taxed at 0%, 15%, or 20% depending on income. This calculator applies a single flat rate for illustration only.

What is annualized return (CAGR)?

Compound Annual Growth Rate measures the smoothed annual return over a holding period. If you bought at $50 and sold at $75 after 2 years, CAGR ≈ 22.5%. Provide buy and sell dates to see CAGR in results.

How do I calculate cost basis with multiple purchases?

Use a weighted average: total cost of all shares divided by total shares. If you bought 50 shares at $40 and 50 shares at $60, your average cost basis is $50 per share. Add lots above to calculate automatically.

Should I include dividends in stock profit?

Yes. Dividends are part of total return. Including them gives a more accurate picture of your investment performance. Enter dividends received in the optional field above.