Calculate your profit or loss on any stock trade. Factor in commissions, fees, dividends, and capital gains tax to see your true net return.
| Item | Amount |
|---|
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Buying and selling stocks is simple. Knowing exactly how much you made or lost — after fees, taxes, and dividends — is where most investors get confused. Your brokerage shows you a number, but is it your gross profit or net? Does it include dividends? What about the tax you owe? This guide gives you the real formulas and real scenarios so you always know your true profit.
| Holding Period | Tax Rate | On $10,000 Profit |
|---|---|---|
| Short-term (< 1 year) | 10-37% (income rate) | $1,000-$3,700 |
| Long-term (1+ year) — low income | 0% | $0 |
| Long-term (1+ year) — most investors | 15% | $1,500 |
| Long-term (1+ year) — high income | 20% | $2,000 |
💡 Key insight: The difference between short-term and long-term capital gains is enormous. On a $10,000 profit, a high earner pays $3,700 if they held less than a year vs $2,000 if they waited 366 days. That one extra day saves $1,700. Always consider the tax impact before selling.
Scenario 1: Simple Stock Trade. Marcus buys 200 shares of Apple at $175 ($35,000 total). Six months later, he sells at $195. Gross profit: ($195 - $175) × 200 = $4,000. ROI: 11.4%. Since he held less than a year, he owes short-term capital gains tax at his 24% bracket: $960. Net profit after tax: $3,040. If he had waited 6 more months for long-term treatment at 15%, he would owe $600 — saving $360.
Scenario 2: Dollar-Cost Averaging. Priya buys Tesla stock monthly: 10 shares at $240, 10 at $220, 10 at $260, 10 at $200. Total: 40 shares for $36,800. Average cost: $920/40 = $230/share. She sells all 40 at $280. Profit: ($280 - $230) × 40 = $2,000. ROI: 5.4%. Her DCA strategy protected her from buying everything at the peak ($260). Use our Investment Return Calculator to annualize her return.
Scenario 3: Dividend Stock. David holds 500 shares of Coca-Cola bought at $55 ($27,500). After 2 years, the price is $62. Capital gain: ($62 - $55) × 500 = $3,500. But he also received $1.84/share/year in dividends: 500 × $1.84 × 2 = $1,840 in dividends. Total return: $3,500 + $1,840 = $5,340 (19.4% ROI). Without dividends, his return looks like 12.7%. Dividends nearly doubled his true profit.
Scenario 4: Tax-Loss Harvesting. Elena sold Stock A for a $5,000 gain and Stock B for a $3,000 loss in the same year. She can offset: $5,000 gain - $3,000 loss = $2,000 net taxable gain. At 15% long-term rate, she owes $300 instead of $750. The loss on Stock B saved her $450 in taxes. She reinvests in a similar (but not identical) fund to maintain market exposure. Use our Percentage Calculator to quickly compute gain/loss percentages across your portfolio.
| Short-term (<1yr) | 10-37% |
| Long-term (1yr+) | 0-20% |
| Most investors (LT) | 15% |
| Net investment tax | +3.8% |
| Loss deduction limit | $3,000/yr |