Understanding your stock profit result
| Sell price vs. breakeven price | Result |
|---|---|
| Sell price above breakeven price | Trade shows a net profit after all fees |
| Sell price equal to breakeven price | Trade exactly covers its cost basis and fees — no net profit or loss |
| Sell price below breakeven price | Trade shows a net loss after all fees |
- This calculator computes realized profit or loss on a single completed round-trip trade (one buy, one sell); it does not account for multiple lots purchased at different prices, which the stock average calculator addresses separately.
- Fees and commissions vary widely by broker and account type — enter the actual fee schedule applicable to your account for an accurate result.
- This calculator does not account for taxes on capital gains, dividends received while holding the position, or the time value of money over the holding period.
What is stock trading profit and loss?
Stock trading profit or loss is the difference between what a position cost to establish — shares purchased multiplied by the buy price, plus any buy-side fee — and what it returned when sold — shares multiplied by the sell price, minus any sell-side fee. This calculator computes that net dollar figure directly, rather than the simpler gross price difference that ignores transaction costs.
Return on capital expresses that same profit or loss as a percentage of the total amount actually deployed (the cost basis, including the buy fee), which allows the result to be compared across trades of different sizes on a consistent basis.
Breakeven price is the exact sale price per share at which total proceeds, after the sell-side fee, exactly equal the total cost basis — the price point below which the trade would show a loss and above which it would show a profit, given the fees involved.
How to use this stock profit calculator
- Enter the number of shares bought and sold in the trade.
- Enter the buy price per share.
- Enter the sell price per share.
- Enter any fee or commission charged on the purchase (enter 0 if none).
- Enter any fee or commission charged on the sale (enter 0 if none).
- Read the total profit or loss, the return on capital as a percentage, the exact breakeven price, and the total cost basis of the position.
- Example: buying 100 shares at $50 with a $5 fee, then selling at $65 with a $5 fee, produces a profit of $1,490 (a 29.77% return on capital) and a breakeven price of $50.10 per share.
The formula behind stock profit calculations
Total cost basis adds the buy-side fee to the total shares purchased at the buy price. Net proceeds subtract the sell-side fee from total shares sold at the sell price. Profit is simply proceeds minus cost basis, return on capital expresses that profit as a percentage of the cost basis, and breakeven price is the sale price per share at which proceeds after the sell fee would exactly equal the cost basis.
Common mistakes
- Ignoring buy-side and sell-side fees when estimating profit, which can meaningfully understate the breakeven price needed, especially on smaller trades.
- Confusing gross price difference (sell price minus buy price) with actual profit, which must also subtract both fees and be based on total shares, not just the per-share price gap.
- Forgetting that return on capital is calculated against the total cost basis including the buy fee, not just the raw share price times quantity.
- Assuming this calculator accounts for capital gains taxes on the profit — it does not, and tax treatment varies by jurisdiction, holding period, and account type.
- Applying this single-trade calculation to a position built from multiple purchases at different prices without first computing the correct average cost basis.
Häufig gestellte Fragen
How is stock trading profit calculated with fees included?
Profit is calculated as net proceeds from the sale (shares sold times sell price, minus the sell-side fee) minus the total cost basis of the purchase (shares bought times buy price, plus the buy-side fee). Including both fees produces a more accurate net profit figure than simply comparing the buy and sell prices alone.
What is the breakeven price on a stock trade?
Breakeven price is the exact sale price per share at which the trade's net proceeds, after the sell-side fee, would exactly equal the total cost basis of the purchase, including the buy-side fee. Selling above this price produces a net profit; selling below it produces a net loss, once both transaction costs are accounted for.
Why is the breakeven price higher than the original buy price?
Because fees are charged on both the purchase and the sale, the sale price must cover not just the original per-share cost but also both fee amounts before the trade breaks even. This is why breakeven price is typically slightly above the raw buy price whenever any transaction fees apply.
Does this calculator account for capital gains tax?
No. This calculator computes pre-tax trading profit, return on capital, and breakeven price based only on share prices, quantities, and transaction fees. Capital gains tax treatment depends on factors such as holding period and jurisdiction and is not modeled here.
What is return on capital in this calculator?
Return on capital expresses the trade's profit or loss as a percentage of the total cost basis actually deployed to establish the position, including the buy-side fee. It allows trades of different sizes to be compared on a consistent percentage basis rather than only in raw dollar terms.
Quellenangaben
- U.S. Securities and Exchange Commission (SEC), Investor.gov. Stocks — understanding trading costs, fees and returns. investor.gov.
- Financial Industry Regulatory Authority (FINRA). Understanding brokerage fees and commissions. finra.org.
- CFA Institute. CFA Program Curriculum — Portfolio Management: Trading Costs and Their Effect on Returns.
- Internal Revenue Service (IRS). Topic No. 409, Capital Gains and Losses. irs.gov.