📈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.
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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.