A capital gain occurs when you sell an asset, such as stock, for more than you paid for it. The difference between the selling price and the purchase price, minus any associated costs, is your capital gain. This profit is often subject to capital gains tax.
This calculator helps you determine your gross capital gain before taxes, considering the purchase price, selling price, number of shares, and any transaction fees or commissions.
How the Calculation Works:
The formula used by this calculator is as follows:
Capital Gain = (Selling Price per Share * Number of Shares) – (Purchase Price per Share * Number of Shares) – Commission/Fees
Let's break down the components:
Total Selling Proceeds: This is calculated by multiplying the Selling Price per Share by the Number of Shares.
Total Purchase Cost: This is calculated by multiplying the Purchase Price per Share by the Number of Shares.
Net Proceeds: Subtracting the Total Purchase Cost from the Total Selling Proceeds gives you the initial profit before fees.
Gross Capital Gain: Finally, the Commission/Fees (which include brokerage fees, trading commissions, and any other transaction costs for both buying and selling) are subtracted from the Net Proceeds to arrive at the final Gross Capital Gain.
Example Calculation:
Suppose you bought 100 shares of XYZ Corp at $50.25 per share and later sold them at $75.50 per share. You also paid a total of $10.00 in commissions for both the purchase and sale.
Purchase Price per Share: $50.25
Number of Shares: 100
Selling Price per Share: $75.50
Commission/Fees: $10.00
Calculation:
Total Selling Proceeds = $75.50 * 100 = $7,550.00
Total Purchase Cost = $50.25 * 100 = $5,025.00
Net Proceeds = $7,550.00 – $5,025.00 = $2,525.00
Gross Capital Gain = $2,525.00 – $10.00 = $2,515.00
In this scenario, your gross capital gain would be $2,515.00.
Note: This calculator provides the gross capital gain. Depending on your location and the holding period of the stock, your capital gain may be classified as short-term or long-term, and will be subject to different tax rates. Consult with a tax professional for advice specific to your financial situation.
function calculateCapitalGain() {
var purchasePrice = parseFloat(document.getElementById("purchasePrice").value);
var numberOfShares = parseFloat(document.getElementById("numberOfShares").value);
var sellingPrice = parseFloat(document.getElementById("sellingPrice").value);
var commissionFee = parseFloat(document.getElementById("commissionFee").value);
var capitalGainResultElement = document.getElementById("capitalGainResult");
// Clear previous results or error messages
capitalGainResultElement.textContent = "–";
// Input validation
if (isNaN(purchasePrice) || purchasePrice <= 0) {
alert("Please enter a valid purchase price per share (greater than 0).");
return;
}
if (isNaN(numberOfShares) || numberOfShares <= 0 || !Number.isInteger(numberOfShares)) {
alert("Please enter a valid number of shares (a whole number greater than 0).");
return;
}
if (isNaN(sellingPrice) || sellingPrice <= 0) {
alert("Please enter a valid selling price per share (greater than 0).");
return;
}
if (isNaN(commissionFee) || commissionFee < 0) {
alert("Please enter a valid commission/fee amount (0 or greater).");
return;
}
var totalPurchaseCost = purchasePrice * numberOfShares;
var totalSellingProceeds = sellingPrice * numberOfShares;
var grossCapitalGain = totalSellingProceeds – totalPurchaseCost – commissionFee;
// Format the result as currency
var formattedCapitalGain = "$" + grossCapitalGain.toFixed(2);
capitalGainResultElement.textContent = formattedCapitalGain;
}