Stock Profit — Smart Financial Analysis
Calculate stock profit/loss, ROI, and annualized returns. Free tool for investors.
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Profit = (Sell Price - Buy Price) × Shares - Commissions. Short-term (held <1 year): taxed as ordinary income (10-37%). Your total investment cost including purchase price and commissions. ROI = (Profit / Total Cost) × 100.
Ready to run the numbers?
Why: Profit = (Sell Price - Buy Price) × Shares - Commissions. Buy 100 shares at $50, sell at $65, $10 commission: (65-50)×100 - 10 = $1,490 profit.
How: Enter Buy Price ($), Sell Price ($), Number of Shares to get instant results. Try the preset examples to see how different scenarios affect the outcome, then adjust to match your situation.
Run the calculator when you are ready.
📋 Quick Examples — Click to Load
📊 Buy vs Sell vs P/L
Cost, revenue, profit/loss, and commission breakdown
🍩 Composition
Cost basis, profit, commission, loss
📈 ROI Comparison
Your ROI vs S&P 500 vs bonds
📉 P/L at Different Sell Prices
Breakeven and sensitivity
For educational purposes only — not financial advice. Consult a qualified advisor before making decisions.
💡 Money Facts
Stock Profit analysis is used by millions of people worldwide to make better financial decisions.
— Industry Data
Financial literacy can increase household wealth by up to 25% over a lifetime.
— NBER Research
The average American makes 35,000 financial decisions per year—many can be optimized with calculators.
— Cornell University
Globally, only 33% of adults are financially literate, making tools like this essential.
— S&P Global
Stock trading is the most accessible form of investing, with over 150 million Americans owning stocks. Understanding profit/loss calculations, cost basis, capital gains tax implications, and annualized returns is essential for every investor. The S&P 500 has returned approximately 10% annually since 1926, but individual stock performance varies dramatically.
Sources: NYSE, IRS Publication 550, S&P Dow Jones Indices, Federal Reserve.
Key Takeaways
- • Profit = (Sell Price - Buy Price) × Shares - Commission
- • Cost basis includes purchase price and commissions for tax purposes
- • Long-term holding (1+ years) qualifies for lower capital gains rates
- • Annualized return compares across different holding periods
Did You Know?
How Does Stock Profit Work?
Profit/Loss Formula
Profit = (Sell Price - Buy Price) × Shares - Commission. Example: Buy 100 at $50, sell at $65, $10 commission = (65-50)×100 - 10 = $1,490.
ROI Calculation
ROI = (Profit / Total Cost) × 100. Total cost = Buy Price × Shares + Commission. $1,490 profit on $5,010 cost = 29.7% ROI.
Annualized Return
Annualized = ((1 + ROI/100)^(1/years) - 1) × 100. Converts total return to an annual rate for fair comparison across holding periods.
Expert Tips
Capital Gains Tax Comparison
| Holding Period | Tax Rate | Notes |
|---|---|---|
| <1 year | 10-37% | Ordinary income |
| 1+ years | 0%, 15%, 20% | Long-term rates |
Frequently Asked Questions
How do I calculate stock profit?
Profit = (Sell Price - Buy Price) × Shares - Commissions. Buy 100 shares at $50, sell at $65, $10 commission: (65-50)×100 - 10 = $1,490 profit.
What about capital gains tax?
Short-term (held <1 year): taxed as ordinary income (10-37%). Long-term (held 1+ years): 0%, 15%, or 20%. Holding stocks over 1 year can save 10-20% in taxes.
What is cost basis?
Your total investment cost including purchase price and commissions. If you bought 100 shares at $50 + $10 commission, cost basis = $5,010. Used to calculate capital gains for taxes.
How do I calculate ROI on stocks?
ROI = (Profit / Total Cost) × 100. $1,490 profit on $5,010 cost = 29.7% ROI. For comparison, annualize: Annualized = ((1+0.297)^(1/years)-1) × 100.
Should I include dividends in profit?
Yes! Total return = price appreciation + dividends. S&P 500 returns ~10% annually: ~7% price appreciation + ~3% dividends. Excluding dividends understates true performance.
What is the wash sale rule?
Can't claim a tax loss if you buy substantially identical stock within 30 days before or after selling at a loss. The loss is deferred, not eliminated. Important for tax-loss harvesting.
Key Statistics
Official Data Sources
⚠️ Disclaimer: This calculator is for educational purposes only. Results do not account for dividends, splits, or taxes. Past performance does not guarantee future results. Not financial advice. Consult a tax or investment professional.
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