Stock Profit Calculator
Calculate your stock trading profit or loss. Enter your buy and sell prices, number of shares, and any commissions to see your total return.
Trade Details
Additional Options
Total dividends received during holding period
Used to calculate annualized return
Your Results
Net Profit/Loss
$5,000.00
+50.00%
Price Scenarios
How to Calculate Stock Profit
Calculating your stock trading profit involves more than just the difference between buy and sell prices. A complete profit calculation should account for commissions, dividends received, and the time value of money.
Basic Profit Formula
For a standard long position:
Understanding Return Metrics
- Percentage Return: Your profit as a percentage of your initial investment
- Annualized Return: Your return adjusted to a yearly basis, useful for comparing investments of different durations
- Break-Even Price: The minimum sell price needed to cover your costs (including commissions)
Short Selling
When short selling, you profit when the stock price falls. You borrow shares, sell them at the current price, and later buy them back (cover) at hopefully a lower price. The profit calculation is reversed:
Tax Considerations
Remember that stock profits are subject to capital gains taxes. Short-term gains (held less than 1 year) are taxed at your ordinary income rate, while long-term gains benefit from lower tax rates. Always consult a tax professional for advice specific to your situation.
Frequently Asked Questions
How do I calculate profit on a stock trade?
Subtract your total buy cost (shares × price + commission) from your total sell proceeds (shares × price - commission). Add any dividends received during the holding period.
What is annualized return?
Annualized return expresses your investment gain as if held for exactly one year. It allows you to compare returns from investments held for different time periods.
Should I include dividends in profit calculations?
Yes. Dividends are part of your total return. For accurate profit calculations, include all dividends received while holding the stock.
What is the break-even price?
The break-even price is the minimum price you need to sell at to recover your initial investment including all commissions. Any price above this represents profit.
How does short selling profit work?
In short selling, you profit when prices fall. You borrow and sell shares at a high price, then buy them back at a lower price. Your profit is the difference minus fees.
Are trading commissions still relevant?
Many brokers now offer commission-free trading for stocks. However, some brokers charge fees, and options/futures often have per-contract fees. Always check your broker's fee schedule.
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