Stock Calculator
Calculate trading profits, losses, ROI, and break-even share prices.
Stock Profit/Loss Calculator
Calculate your stock trading profit or loss including commissions and dividends
💵Purchase Information
Most brokers now offer $0 commissions
💰Sale Information
Total dividends received while holding the stock
Profit Breakdown
Detailed Calculation
Per Share Analysis
What If You Sold at Different Prices?
Commission Impact Analysis
How to Use the Stock Calculator
This calculator helps you calculate the profit or loss from buying and selling stocks. Enter your purchase price, selling price, number of shares, trading commissions, and any dividends received to see your total return on investment (ROI).
Understanding Stock Trading Calculations
When trading stocks, your profit isn't simply the difference between buy and sell prices. You need to account for:
- Purchase Cost: Number of shares × Buy price per share
- Trading Commissions: Fees charged when buying and selling (often $0 with modern brokers)
- Dividends: Cash payments from the company to shareholders
- Sale Proceeds: Number of shares × Sell price per share
Stock Profit Calculation Flow
How your money flows through a stock trade
Key Metrics Explained
Net Profit/Loss
Your total profit or loss after all costs and income: Net Profit = (Sale Proceeds - Sell Commission) + Dividends - (Purchase Cost + Buy Commission)
Return on Investment (ROI)
The percentage return on your investment: ROI = (Net Profit / Total Invested) × 100
A 20% ROI means you gained $20 for every $100 invested.
Break-Even Price
The minimum selling price needed to avoid a loss after accounting for all fees: Break-Even = (Purchase Cost + Buy Commission + Sell Commission) / Shares
Investment Time Horizons
Different trading strategies for different time frames
Day Trading
Timeline: Minutes to hours
Goal: Quick profits
Risk: Very High ⚠️
Skill: Expert level
❌ Not for beginners
Swing Trading
Timeline: Days to weeks
Goal: Trend profits
Risk: Medium ⚠️
Skill: Intermediate
⚡ Requires research
Buy & Hold
Timeline: Years to decades
Goal: Long-term growth
Risk: Low-Medium ✅
Skill: Beginner-friendly
✅ Best for most investors
💡 Pro Tip: Warren Buffett's favorite holding period is "forever." Long-term investing typically outperforms short-term trading for most investors due to lower fees, taxes, and reduced emotional decisions.
Investment Strategy Tips
- Minimize trading commissions by using zero-commission brokers
- Consider dividend-paying stocks for passive income
- Calculate your break-even price before entering a trade
- Track both percentage gains (ROI) and dollar amounts
- Account for taxes on capital gains (not included in this calculator)
- Diversify investments to manage risk
Trading Tips
Common Trading Scenarios
- Day Trading: Buy and sell within the same day, focusing on small price movements
- Swing Trading: Hold positions for days or weeks to capture larger trends
- Buy and Hold: Long-term investing focusing on dividends and growth over years
- Dollar-Cost Averaging: Regular purchases regardless of price to average out costs
Risk Management Essentials
Position Sizing
Don't put all eggs in one basket. A common rule: no single stock should exceed 5-10% of your portfolio.
Example: With $50,000 portfolio, limit each position to $2,500-$5,000
Stop-Loss Orders
Set automatic sell orders to limit losses. Common approach: sell if price drops 7-10% from purchase.
Example: Buy at $100, set stop-loss at $92 (8% max loss)
Target Prices
Set profit targets before buying. Many traders use 2:1 or 3:1 reward-to-risk ratios.
Example: Risk $8 (8% loss) to gain $24 (24% profit) = 3:1 ratio
Diversification
Spread investments across sectors, industries, and asset types to reduce risk.
Example: Mix tech, healthcare, finance, real estate, and bonds
⚠️ Important: Use this calculator's "Alternative Sell Scenarios" to plan your exit strategy before entering a trade. Know your break-even, stop-loss, and target prices in advance.
Real Trading Example Breakdown
- • $0 commissions saved $10 in fees vs. traditional brokers
- • Holding >1 year qualified for long-term capital gains tax treatment
- • $50 dividend = 0.33% additional yield on top of 16.67% price appreciation
- • If sold at break-even ($150), would have still earned $50 from dividends
Frequently Asked Questions
What's the difference between profit and ROI?
Profit is the absolute dollar amount you gained or lost (e.g., $500 profit). ROI (Return on Investment) is the percentage return relative to your investment (e.g., 10% ROI). A $500 profit on a $5,000 investment is 10% ROI, while the same $500 profit on a $10,000 investment is only 5% ROI.
Are trading commissions still common?
Many modern online brokers (like Robinhood, Webull, Fidelity, Charles Schwab) now offer commission-free stock trading. However, some brokers still charge fees, especially for certain order types, options trading, or international stocks. Always check your broker's fee structure.
How do dividends affect my total return?
Dividends are cash payments from companies to shareholders, typically paid quarterly. They add to your total return even if the stock price doesn't increase. For example, if you buy a stock at $100, it stays at $100, but you receive $4 in dividends, your total return is 4% even though the price didn't change.
What is break-even price and why is it important?
Break-even price is the minimum selling price needed to avoid losing money after all costs. It accounts for purchase price, commissions, and fees. Knowing your break-even helps you set realistic price targets and stop-loss orders. If you bought at $100 with $5 commission, your break-even might be $100.10 per share.
Does this calculator account for taxes?
No, this calculator doesn't include capital gains taxes. In the US, profits from stocks held less than a year are taxed as short-term capital gains (ordinary income tax rates), while stocks held longer than a year qualify for lower long-term capital gains tax rates (0%, 15%, or 20% depending on income). Consult a tax professional for specific guidance.
How do I calculate stock gains for tax purposes?
For taxes, you need your "cost basis" (purchase price + buy commission) and "proceeds" (sale price - sell commission). The difference is your capital gain or loss. This calculator shows your net profit, which is your taxable gain when dividends are excluded. Keep records of all trades, as brokers report these to the IRS on Form 1099-B. If you bought shares at different times, you may need to track each lot separately.
What's the difference between short-term and long-term capital gains?
Short-term gains (stocks held ≤1 year) are taxed as ordinary income at your marginal tax rate (up to 37%). Long-term gains (stocks held >1 year) receive preferential tax treatment: 0% for low incomes, 15% for middle incomes, and 20% for high incomes. For example, a $10,000 profit taxed at 37% (short-term) costs $3,700 in taxes, while at 15% (long-term) it's only $1,500—a $2,200 difference!
Should I include dividends in my ROI calculation?
Yes! Total return includes both price appreciation and dividends. This calculator includes dividends in the net profit and ROI calculations, giving you a complete picture. Many dividend stocks have modest price gains but substantial dividend income. For example, a stock that stays flat in price but pays 5% annual dividends still delivers a 5% return. Always consider total return when evaluating investments.
How often should I check my stock portfolio?
For long-term investors, checking quarterly or even annually is sufficient. Frequent checking can lead to emotional decisions based on short-term volatility. Day traders check constantly, but this requires significant time and expertise. A good middle ground is monthly reviews to rebalance if needed. Remember: "Time in the market beats timing the market." Set clear entry and exit points, then stick to your strategy rather than reacting to daily price swings.
What's a good ROI for stock investments?
The S&P 500 has historically returned about 10% annually (7% after inflation). Individual stocks vary widely—some gain 100%+, others lose everything. A "good" ROI depends on your risk tolerance and time horizon. For comparison: savings accounts earn 0-5%, bonds 3-6%, index funds 7-10%, and growth stocks can range from -100% to +500%+. Anything beating inflation (3-4%) preserves purchasing power. Remember: higher returns typically require higher risk.
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