Stock Calculator: Estimate Profit or Loss
This calculator helps you estimate your profit or loss from buying and selling stocks, plus the return on your investment. Enter your details below to see your estimated performance.
This calculator helps you estimate your profit or loss from buying and selling stocks, plus the return on your investment. Enter your details below to see your estimated performance.
Here’s a quick guide to the information you’ll need to enter to estimate your return.
• Number of shares: Enter the total number of shares you purchased in this single transaction.
• Purchase price: This is the price you paid for one share of the stock. For example, if you bought one share of a stock at $150, you would enter 150.
• Sell price: This is the price you received for one share when you sold. For example, if you sold that same share later for $165, you would enter 165.
• Buy commission (Optional): Many brokerages now offer $0 commission trades. If yours charges a fee to purchase stock, enter that amount here.
• Sell commission (Optional): Like the buy commission, this is often $0. If your brokerage charges a fee to sell stock, enter that amount here.
After you enter your information, the calculator will show you two key results:
• Profit/Loss: This is the potential total dollar amount you gained or lost on the investment.
• Return on Investment: This shows your potential profit or loss as a percentage of your original investment.
This tool calculates returns from buying and selling stock by determining both your profit or loss and your return on investment (ROI) using the following formulas:
Profit/Loss = (Total Sell Amount – Sell Commissions) – (Total Buy Amount + Buy Commissions)
Where:
• Total Buy Amount = Purchase Price per Share * Number of Shares
• Total Sell Amount = Sell Price per Share * Number of Shares
ROI = (Sell Price * N – Csell) – (Purchase Price * N + Cbuy)Purchase Price * N + Cbuy * 100%
Where:
• N = Number of shares
• Purchase price = Price per share when bought
• Sell price = Price per share when sold
• Cbuy = Buy commission in dollars
• Csell = Sell commission in dollars
This calculation provides a simple estimate of your return, but it does not factor in these external considerations:
• Dividends: The calculation only accounts for price appreciation (capital gain). Any dividend cash you received while holding the stock is not included in the final profit/loss total.
• Taxes: The result is a pre-tax figure and does not account for capital gains taxes or dividend taxes, which will impact your net return.
• Inflation: The calculator provides results in nominal (non-inflation adjusted) dollars. It does not adjust for the real loss of purchasing power over the investment period.
Capital Gain is the profit from the rise in the stock’s price. Total Return is the capital gain plus any dividends received. This calculator provides a result closer to your capital gain, as it excludes dividends.
Trading fees, even small ones, reduce your profits. Factoring them in gives you a more accurate understanding of your investment’s true performance.
This calculator does not account for capital gains taxes or dividend taxes, which can significantly impact your net return. Tax laws vary, so it’s a good idea to consult with a tax professional.