Calculator Panel
Calculation Ready
Enter your values above and click Calculate.
What This Calculator Does
This calculator determines the net monetary profit or loss resulting from a completed stock buy and sell trade. By incorporating optional commissions for both entry and exit, it provides traders with their true bottom-line results.
How to Use This Calculator
Input your buying price per share, selling price per share, total number of shares, and any optional entry or exit broker commissions. Click Calculate to determine your exact net profit, total investment capital, total revenue, and percentage gain.
How the Calculation Works
The underlying math engine processes your inputs using exact formulas. This systematic approach ensures professional, institutional-grade calculation precision:
Mathematical Formula
Formula Legend:
- · S = Selling Price per share.
- · Q = Total quantity of shares traded.
- · Cs = Commission paid for the sale transaction.
- · B = Purchase Price per share.
- · Cb = Commission paid for the purchase transaction.
Practical Example
Suppose you buy 100 shares of a stock at $150.00 per share with a purchase commission of $5.00, and later sell them at $180.00 per share with a selling commission of $5.00:
Step-by-Step Mathematical Walkthrough:
- 1 First, calculate total purchase cost: 100 shares * $150.00 + $5.00 buy commission = $15,005.00.
- 2 Second, calculate total sales revenue: 100 shares * $180.00 - $5.00 sell commission = $17,995.00.
- 3 Subtract purchase cost from sales revenue: $17,995.00 - $15,005.00 = $2,990.00 net profit.
- 4 Your total percentage return on capital basis is exactly 19.93% ($2,990.00 / $15,005.00).
Important Assumptions & Notes
- The purchase and sale represent the complete entry and exit of the trade.
- The input currency and value scales remain consistent across both buy and sell dates.
- Tax drag is excluded from this basic trade calculation.
Common Mistakes or Considerations
- Ignoring brokerage commission fees which eat into small profits.
- Confusing gross profit with net profit after all transaction fees.
Frequently Asked Questions
How is stock profit calculated?
By subtracting the original purchase cost (shares multiplied by buy price plus buying commissions) from the selling value (shares multiplied by sell price minus selling commissions).
Does this include dividend payments?
Standard stock profit calculations measure capital gains from price changes, but our Stock Return Calculator allows you to add any dividends received for a complete total return calculation.
How do buying and selling commissions affect stock profit?
Commissions are transaction costs that reduce your net profit. Buying commissions increase your cost basis, while selling commissions reduce your net sale proceeds.
Is stock profit taxable?
Yes, realized stock profits are taxable as capital gains. If you held the stock for one year or less, it is taxed at short-term capital gains rates (ordinary income). If held longer, it is taxed at lower long-term capital gains rates.
What is the difference between realized and unrealized stock profit?
Unrealized profit ('paper profit') is the increase in value of a stock you still own. Realized profit occurs only when you sell the stock and lock in the cash gain.