📈Stock Calculator
Calculate stock profits, average cost basis, and target prices. Perfect for planning trades and tracking stock investments.
Frequently Asked Questions
How do I calculate stock profit?
Stock profit = (Sell Price - Buy Price) × Number of Shares - Commissions. For example, buy 100 shares at $50 ($5,000 total), sell at $60 ($6,000 total), profit is $1,000 or 20%. Don't forget to subtract trading commissions. Also calculate percentage return: (Profit / Total Cost) × 100. A $1,000 profit on a $5,000 investment is a 20% return. Remember that profits are taxable - short-term gains (held < 1 year) are taxed as ordinary income (10-37%), while long-term gains get preferential rates (0-20%).
What's the difference between average cost and cost basis?
Cost basis is your total investment in a stock, including commissions. Average cost is cost basis divided by total shares owned. If you buy 100 shares at $50, then 50 more at $40, your cost basis is $7,000 and average cost is $46.67 per share. This matters for taxes and determining profit. Dollar-cost averaging (buying shares regularly regardless of price) results in a lower average cost than buying once at the high. When selling, you must track which shares (specific ID, FIFO, or average cost) for accurate tax reporting.
How do commissions and fees affect stock returns?
Commissions reduce your returns, especially on small trades. A $10 commission on a $1,000 trade is 1% - you need to gain 2% just to break even (1% to overcome buy commission, 1% for sell commission). With zero-commission brokers (Robinhood, Fidelity, Schwab, etc.), this is less of an issue, but watch for other fees: SEC fees ($0.0008 per $100 sold), market data fees, wire transfer fees, and account maintenance fees. Frequent trading with commissions can dramatically reduce returns - a $10 round-trip commission on a $1,000 trade 10 times per year costs $100 (10% of your portfolio).
What's a realistic stock return target?
The S&P 500 has historically returned about 10% annually on average. Individual stocks are more volatile - some gain 100%+, others lose everything. Realistic targets: Conservative investors: 7-10% annually. Moderate investors: 10-15% annually. Aggressive investors: 15-25% annually (much higher risk). Day traders often lose money after fees. Warren Buffett's Berkshire Hathaway averaged 20% over decades (exceptional). If someone promises consistent 50%+ returns, it's likely a scam. Set reasonable targets, diversify, and remember that past performance doesn't guarantee future results.
Should I sell my stock to lock in profits or hold longer?
This depends on your investment thesis, tax situation, and market outlook. Reasons to sell: (1) Stock hit your target price, (2) Fundamentals deteriorated, (3) Better opportunities elsewhere, (4) Rebalancing portfolio, (5) Need the money. Reasons to hold: (1) Long-term capital gains tax benefits (held > 1 year = lower taxes), (2) Company still growing, (3) Avoid market timing mistakes, (4) Let winners run (Peter Lynch: 'Selling your winners and holding your losers is like cutting your flowers and watering your weeds'). Consider selling a portion to lock in some gains while keeping upside exposure. Never make decisions based on emotions or short-term fluctuations.
Why Use This Calculator?
Profit and Loss Calculation
Calculate exact gains/losses including fees and commissions. Buy 100 shares at $50 ($5,000) + $10 fees, sell at $65 ($6,500) - $10 fees = $1,480 profit (29.6% return). Track real returns after all costs, not just stock price appreciation.
Position Sizing and Risk Management
Determine share quantity for risk budget. $50k portfolio, 2% risk per trade = $1k maximum loss. Stock at $100, stop-loss at $95 ($5 risk) = buy 200 shares ($20k position). Never risk more than 1-2% portfolio per trade.
Cost Basis Tracking Across Purchases
Calculate average cost basis for multiple buys. Bought 50 shares at $40 ($2,000), 50 more at $60 ($3,000) = 100 shares, $50 average basis. Selling at $55 = $5 profit per share, not $15 (if only counting second purchase).
Dividend Yield and Total Return
Include dividends in total return calculation. Stock bought at $100, now $108 (8% gain) + $4 annual dividend (4% yield) = 12% total return. Dividend stocks provide income plus appreciation - both matter for true performance.
Commission and Fee Impact Analysis
See how trading costs erode returns. $10 commission buying $1,000 stock = 1% immediate loss. Need 2% gain just to break even. Frequent trading with $10/trade costs $500-1,000+ annually. Use commission-free brokers to save thousands.
Tax Implications of Gains and Losses
Calculate after-tax returns. $10k short-term gain (held <1 year) taxed at 24% ordinary rate = $2,400 tax, keep $7,600. Same gain long-term (>1 year) taxed at 15% = $1,500 tax, keep $8,500. Holding 366 days saves $900.
Step-by-Step Guide
Enter Number of Shares
Input how many shares you own or plan to buy. Determines position size and total value. 100 shares at $50 = $5,000 position vs 500 shares = $25,000 position. More shares = more capital at risk and more profit/loss per dollar move.
Example:
Example: Buying 100 shares, 500 shares, or fractional 10.5 shares
Input Purchase Price Per Share
Enter price paid per share (or average if multiple purchases). This is your cost basis. Bought at $42.50? Enter $42.50. Multiple purchases at $40 and $50? Enter average $45. Include stock splits - 2-for-1 split halves basis.
Example:
Example: Purchased 100 shares at $48.75 per share = $4,875 total cost
Enter Current or Selling Price
Input current market price to see unrealized gain/loss, or enter expected selling price for profit projection. Real-time price = $53.20? Enter that. Planning to sell at $60 target? Model that scenario.
Example:
Example: Current price $52, sell target $60, or stop-loss $45
Add Purchase Fees and Commissions
Include all buying costs - commissions, exchange fees, SEC fees. Traditional brokers charge $5-10 per trade. Fidelity/Schwab/Robinhood = $0. Even $10 fee on $1,000 trade = 1% cost that reduces returns. Small fees compound on frequent trading.
Example:
Example: $0 commission or $6.95 per trade at traditional broker
Add Selling Fees and Commissions
Include selling costs - commission, SEC fees (~$2.20 per $10k sold), exchange fees. Round-trip trading costs (buy + sell) can hit 2% with traditional brokers. $10 buy + $10 sell + $2 SEC fee on $1k trade = 2.2% hurdle to profit.
Example:
Example: $0 selling commission + $2 SEC fee = $2 total
Calculate Gross Profit or Loss
System calculates (Selling Price - Purchase Price) × Shares. Bought 200 shares at $45 ($9,000), selling at $52 ($10,400) = $1,400 gross profit before fees. This is raw stock appreciation, not yet accounting for transaction costs.
Example:
Example: 200 shares × ($52 - $45) = $1,400 gross profit
Subtract All Fees for Net Profit
Calculator deducts purchase fees + selling fees from gross profit. $1,400 gross - $10 buy fee - $10 sell fee = $1,380 net profit. Fees can consume 10-30% of small-position profits. Commission-free trading saves substantially over time.
Example:
Example: $1,400 gross - $20 fees = $1,380 net profit (24.6% return)
Review Percentage Return on Investment
Shows return as percentage of total invested capital. $5,000 invested, $1,200 profit = 24% ROI. More meaningful than dollar profit - $1,000 profit on $5k (20%) beats $1,500 profit on $20k (7.5%). Compare returns across positions.
Example:
Example: 24% ROI in 8 months = 36% annualized, beating market
Factor in Dividends Received
Add dividends to profit for total return. Held 100 shares for 2 years, received $8/share dividends ($800), stock gained $1,200 = $2,000 total return (40%). Dividend income often provides 2-5% of total annual returns for dividend stocks.
Example:
Example: $1,200 capital gain + $800 dividends = $2,000 total return
Consider Tax Impact of Short vs Long-Term
Calculator shows after-tax returns. Held <1 year? Short-term gain taxed as ordinary income (10-37%). Held >1 year? Long-term 0/15/20% rates. $5k gain taxed 24% short-term = $1,200 tax vs 15% long-term = $750 tax. Wait for long-term saves $450.
Example:
Example: Holding 13 months vs 11 months saves 9-22% tax on gains
Expert Tips & Strategies
Use Limit Orders to Control Entry/Exit Prices
Always use limit orders, never market orders. Market order can fill $2-5 higher than expected (slippage). Limit order at $50 guarantees $50 or better. On 100 shares, slippage costs $200-500. Saving $300 per trade = $3,000-6,000 annually for active traders.
Track Cost Basis Across Multiple Purchases
Use average cost basis for stocks bought multiple times. Bought 50 shares at $40, 50 at $60, 50 at $50 = 150 shares, $50 average basis. Selling at $55 = $5 profit per share correctly, not confusing with individual purchase prices. Most brokers calculate automatically.
Include ALL Fees: Commission, SEC, Exchange
Account for every cost: broker commission ($0-10), SEC fees ($2.20 per $10k sold), exchange fees ($0.30 per 100 shares). These add up fast with frequent trading. 50 trades/year with $10 commission = $1,000 annual drag. Switch to $0 commission brokers.
Hold Over 1 Year for Long-Term Capital Gains
Wait 366 days minimum for long-term treatment. Short-term (held <1 year) taxed 10-37%, long-term 0-20%. On $10k gain: short-term at 24% = $2,400 tax vs long-term 15% = $1,500. Saving $900 by holding 2 more months is worth it.
Calculate Position Size Based on Risk Tolerance
Risk only 1-2% portfolio per trade. $100k portfolio, 2% risk = $2k max loss. Stock $100, stop-loss $95 (5% risk), position size = $2k ÷ $5 risk = 400 shares ($40k). Never go "all in" - single bad trade shouldn't devastate account.
Don't Forget Dividend Income in Total Returns
Total return = price appreciation + dividends. Stock up 5% + 3% dividend yield = 8% total return. Dividend aristocrats (25+ years dividend growth) provide 2-5% annual income. Reinvesting dividends (DRIP) compounds returns - adds 2-3% long-term.
Use Stop-Loss Orders to Limit Downside Risk
Set stop-loss 5-10% below entry to cap losses. Buy at $50, stop-loss $45 = max 10% loss ($500 on 100 shares). Prevents disaster if stock crashes. Trailing stop-loss locks in gains - stock rises to $60, trailing stop $54 = secured $400 profit.
Avoid Frequent Trading Due to Fee Accumulation
Trading 3× per week with $10 commission = $1,560/year in fees (156 trades). That's 1.5% annual drag on $100k account. Buy-and-hold eliminates this. Even $0 commission has bid-ask spread costs (~0.1-0.3%). Trade only when conviction high.
Common Mistakes to Avoid
✓ Better approach: Include ALL costs: buy commission, sell commission, SEC fees, exchange fees. $10k position with $20 round-trip fees = 0.2% immediate loss. Over 50 trades/year, that's $1,000 (1% portfolio drag). Always calculate net profit after fees, not gross.
✓ Better approach: Market order on volatile stock can fill $1-5 worse than expected. On 200 shares, that's $200-1,000 slippage loss. Always use limit orders at exact price. Wait for price to come to you or adjust limit - never accept unknown execution price.
✓ Better approach: Multiple purchases at different prices? Use average cost basis. Bought 100 shares over 5 purchases averaging $48? That's your basis, not the first or last purchase price. Wrong basis causes incorrect tax reporting and wrong profit calculations.
✓ Better approach: Stock up 20%, selling due to fear it'll drop. Winners often become 100-500% gainers. Let winners run with trailing stop-loss to lock profits. Selling too early caps upside - many investors regret selling Amazon at $100 (now $3,000+). Don't cut flowers to water weeds.
✓ Better approach: Stock down 30%, refusing to sell hoping for recovery. Average losing stock goes to zero. Use 7-10% stop-loss rule - sell when position drops 7-10% to limit damage. Small losses are manageable, 50-90% losses destroy accounts. Hope is not a strategy.
✓ Better approach: Stock bought at $100, now $105 (5% gain) + $4 dividend paid (4%) = 9% total return, not 5%. Ignoring dividends understates true performance by 2-5% annually for dividend stocks. Many dividend aristocrats beat market due to income + growth combo.
✓ Better approach: Trading frequently, paying 24-37% short-term capital gains vs 15% long-term. $20k trading profit taxed 32% = $6,400 vs 15% = $3,000. Frequent trading costs $3,400 more in taxes. Hold over 1 year whenever possible to save 50%+ on taxes.
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Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.