Calculating Your Trading Outcome

Whether you are a seasoned investor or just starting out, understanding the true profit or loss from your stock trades is fundamental. It is not as simple as subtracting the buy price from the sell price. Transaction costs, such as broker commissions, can impact your net return. This calculator provides a precise calculation by factoring in all the necessary components of a trade.

How to Use the Calculator

To calculate your trade's result, please provide the following details:

• Buy Price Per Share: The price you paid for a single share of the stock.
• Sell Price Per Share: The price at which you sold a single share of the stock.
• Number of Shares: The total quantity of shares you bought and sold.
• Buy Commission: The fee your broker charged you to execute the purchase. Enter 0 if you use a commission-free broker.
• Sell Commission: The fee your broker charged you to execute the sale.

Understanding the Results

The calculator provides two key metrics to evaluate your trade's performance:

• Net Profit/Loss: This is the total cash gain or loss from your investment. It is calculated by taking your total sale proceeds and subtracting your total cost basis.
• Return on Investment (ROI): This percentage shows how efficiently your invested capital generated a profit. It is calculated by dividing the Net Profit/Loss by the total cost basis. ROI is a useful metric for comparing the performance of different investments.

Important Considerations: Taxes

A profitable trade is a great outcome, but it is important to remember that investment profits are often taxable. This is known as capital gains tax. The tax rate you pay depends on how long you held the stock. This calculator does not account for taxes, so be sure to consider the tax implications when making investment decisions.

Disclaimer: This calculator is for informational purposes only. It does not provide financial or tax advice. Stock market investing involves risk, including the potential loss of principal. Consult with a qualified financial professional before making any investment decisions.