How to use the stock profit calculator
- Enter the Shares bought, the Buy price per share ($) and the Sell price per share ($).
- Add Buy commission and fees ($) and Sell commission and fees ($) if your broker charged any.
- Enter the Holding period (years), for example 0.5 for six months.
- Optionally add Dividends received ($) and a Tax rate on the gain (%).
- Read the profit or loss, total return, annualized return and break-even sell price, then check the step table.
How stock profit is calculated
Cost = Shares x Buy price + Buy fees
Proceeds = Shares x Sell price - Sell fees
Profit = Proceeds + Dividends - Cost
Total return = Profit / Cost
Annualized return = ((Proceeds + Dividends) / Cost)^(1 / Years) - 1
The annualized figure is the compound annual growth rate (CAGR): the steady yearly rate that would turn your cost into your final value. The break-even sell price is the price at which profit is zero after fees and dividends. Dividends are treated as cash received by the sale date.
Worked example with the default numbers
100 shares bought at $50.00 cost $5,000.00. Sold at $75.00 they bring in $7,500.00, a profit of $2,500.00 and a total return of 50.00%. Held for 2 years, the annualized return is 1.5^(1/2) - 1 = 22.47%, not 25%, because gains compound. Add a $4.95 commission on each trade and the cost becomes $5,004.95, proceeds $7,495.05, profit $2,490.10, total return 49.75%, annualized return 22.37%, and the break-even sell price $50.10.
Limits and edge cases
- A hold under one year gets an annualized figure with a warning, because stretching a short gain across 12 months exaggerates it. Holds under three months show N/A, and a sell price of 0 shows -100.00%.
- The tool models one purchase and one sale. If you bought in several lots, use your average cost or run each lot separately. For a percentage-only view, try the ROI calculator.
- US tax for 2026: gains on shares held more than a year are taxed at 0% up to $49,450 of taxable income for single filers ($98,900 married filing jointly), 15% up to $545,500 ($613,700), and 20% above that. Gains on shares held a year or less are taxed as ordinary income. A 3.8% net investment income tax can apply above $200,000 ($250,000 joint).
- The wash sale rule disallows a loss if you buy the same stock within 30 days before or after the sale. For a fuller tax estimate, use the capital gains calculator, and to project income from dividends, the dividend calculator.
Stock profit questions people ask
How do I calculate stock profit?
Profit equals shares times sell price minus the sell commission, minus shares times buy price plus the buy commission. 100 shares bought at $50 and sold at $75 with no commissions is a $2,500 profit, a 50% return.
What is annualized return?
The compound yearly rate that turns your cost into your proceeds: proceeds divided by cost, raised to the power of 1 divided by years, minus 1. A 50% gain over 2 years is about 22.47% a year.
How is stock profit taxed?
In the US, gains on shares held more than one year are long-term capital gains taxed at 0%, 15% or 20%, depending on taxable income. Shares held one year or less are taxed at ordinary income rates.
How do commissions change my break-even price?
Both commissions raise the price you need. Divide your cost plus the sell commission by your shares: 100 shares bought at $50 with $4.95 fees each way need a sell price of $50.10 to break even.
Does the calculator include dividends?
Yes, if you enter the total in Dividends received. They are added to your profit and return as cash received by the sale date. Leave the field at 0 for price gain only.
Sources: Internal Revenue Service, Topic 409, Capital gains and losses; Rev. Proc. 2025-32 (2026 capital gains thresholds); Topic 559, Net investment income tax; Publication 550, Investment Income and Expenses (wash sales).