Understanding the stock profit calculator — concept and principle
This calculator works out the profit or loss on a stock trade after commissions, fixed fees and taxes. It also gives the return on the money invested, the profit per share and the break-even sell price.
How it is calculated
- Purchase cost = buy price × shares + buy commission (% of the purchase) + fixed fee.
- Sale proceeds = sell price × shares − sell commission − fixed fee − any tax on the sale amount (such as a securities transaction tax).
- Gain before tax = proceeds − purchase cost; capital-gains tax applies only to a positive gain.
- Return = net profit ÷ purchase cost.
- Break-even price = the sell price at which net profit is zero before gains tax.
The principle
A trade only makes money if the sale covers what you paid plus every cost along the way. Percentage commissions grow with the trade size, fixed fees matter more for small trades, and a transaction tax on the sale reduces proceeds whether you gain or lose. The break-even price tells you how far the share must rise just to recover costs.
Worked example
Default inputs: buy 52.40 USD, sell 61.75 USD, 100 shares, commission 0.015% each way, no fixed fee or taxes.
- Purchase cost = 5,240 + 0.015% × 5,240 ≈ 5,240.79 USD.
- Sale proceeds shown = 61.75 × 100 = 6,175.00 USD; the sell commission is 0.93 USD.
- Fees and taxes paid = 0.79 + 0.93 ≈ 1.71 USD.
- Net profit = 6,175.00 − 0.93 − 5,240.79 ≈ 933.29 USD, or 9.33 USD per share.
- Return = 933.29 ÷ 5,240.79 ≈ 17.81%; break-even sell price ≈ 52.42 USD.
| Sell price per share | Net profit |
|---|---|
| 15.4 | -$3,697.27 |
| 30.9 | -$2,153.75 |
| 46.3 | -$610.23 |
| 61.8 | $933.29 |
| 77.2 | $2,476.81 |
| 92.6 | $4,020.32 |
| 124 | $7,107.36 |
How to read the result
Compare the return with how long you held the shares; a 17.81% gain in one month is very different from one over five years. In markets with a securities transaction tax, such as Korea, enter that rate in the sale-tax field to see the real profit. Check how your country taxes capital gains before using the gains-tax field.
Common mistakes
- Forgetting the sell-side commission and transaction tax.
- Ignoring dividends received, which add to the total return.
- Using the gains tax on a loss.
- Comparing returns over different holding periods without annualizing.
Frequently asked questions
How do I calculate stock profit?
Subtract the total purchase cost from the net sale proceeds after all fees and taxes.
What is a break-even price?
The sell price at which you neither gain nor lose after costs.
Should I include dividends?
For total return, yes; add dividends received to the proceeds.
Sources: US SEC Investor.gov, "Brokerage fees" and investor education on trading costs · 증권거래세법 (증권거래세 과세 기준)