Stock Profit Calculator
Calculate your net gains, ROI, and break-even price after fees.
How to Calculate Your Stock Market Returns
Successful investing isn't just about the share price going up; it's about understanding your "bottom line" after all expenses. Our Stock Profit Calculator helps you visualize the actual cash you take home by accounting for trading commissions and capital gains taxes.
The Formula for Net Profit
To find your true profit, you must use the following calculation:
Net Profit = ((Sell Price * Shares) – Sell Fees) – ((Buy Price * Shares) + Buy Fees) – Taxes
Why Commissions Matter
Even with many brokers moving to zero-commission trading, hidden fees or regulatory charges (like SEC fees) can eat into your returns. If you are a high-volume trader or use a full-service broker, these costs can significantly raise your Break-even Price—the price at which your sell value exactly covers your total entry and exit costs.
Realistic Example
Imagine you buy 50 shares of a tech company at $200.00 per share. Your broker charges a $5.00 flat fee for the trade. Your total investment is $10,005.00.
A year later, you sell at $250.00 per share. You pay another $5.00 fee to sell. Your gross revenue is $12,500.00 minus the $5.00 fee, totaling $12,495.00.
- Gross Profit: $2,490.00
- ROI: 24.89%
- Break-even: $200.20 per share (You need the stock to rise $0.20 just to cover fees).
Understanding Capital Gains Tax
In many jurisdictions, the profit you make is taxable. Short-term capital gains (assets held for less than a year) are often taxed at your regular income tax rate, while long-term gains may benefit from lower rates. Always consult with a tax professional regarding your specific situation.