📈 Stock Profit Calculator
Calculate profit or loss on a stock trade from buy price, sell price, and shares.
Stock Profit and Capital Gains Tax
Stock profit = (Sell Price × Shares) − (Buy Price × Shares) − Commissions. If held over one year, gains are taxed at preferential long-term capital gains rates: 0% (up to $47,025 taxable income, single 2024), 15% (most middle-income earners), or 20% (highest earners). Short-term gains are taxed as ordinary income at your marginal rate.
The 1-Year Holding Period Rule
Waiting just one extra day to cross the 1-year mark can save significant taxes. On a $10,000 gain, the difference between short-term (22% rate = $2,200 tax) and long-term (15% rate = $1,500 tax) is $700 saved by holding one more day. High-income investors benefit even more from the 20% vs 37% difference.
People Also Ask
No — the IRS taxes realized capital gains (from selling) not unrealized gains (on paper). You can hold a stock that has tripled in value for decades with no tax owed. Tax is only due when you sell (or when you receive dividends or distributions).
Yes — capital losses offset capital gains dollar for dollar. If you have $5,000 in gains and $3,000 in losses, you owe tax on only $2,000. Up to $3,000 in net capital losses can also be deducted against ordinary income each year, with any remaining losses carried forward to future years.