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Stock Profit Calculator
Calculate your stock investment profit, loss, and return on investment.
Stock Purchase
The $50 Stock Thatthat Actually Cost You $52
You bought a stock at $50. It's now worth $55. You made $5, right? Wrong. After a $5 buy commission and $5 sell commission, you actually made $0 per share. Your "10% gain" turned into a 0% gain—or worse, a loss if you factor in taxes and the spread.
This calculator shows you the real profit after all costs. Because profit on paper doesn't pay your bills.
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💡 Expert Tip: Fees Are Silent Killers
In the age of zero-commission brokers, fees still exist. They're just hidden. The bid-ask spread (the difference between buy and sell prices) is typically 0.01-0.10% for liquid stocks, but can be 1-3% for penny stocks. SEC fees, TAF fees, and exchange fees add up.
Even at "zero commission," a $10,000 trade might cost you $10-30 in hidden fees. Over 100 trades per year? That's $1,000-3,000 in costs eating your returns.
David Chen, CFA: "I tell clients: if you're day trading, you need to beat the market PLUS your fees. That's a 12-15% annual return just to break even after costs and taxes. Most people don't realize they're running uphill."
⚠️ Common Mistake: Forgetting About Taxes
You made $1,000 in profit? The IRS wants $200-370. Your calculator shows gross profit. Your actual take-home is net profit minus taxes.
Example: You flip a stock for a $5,000 short-term gain (held <1 year). At a 32% tax bracket, you owe $1,600 in taxes. Your real profit? $3,400.
Always calculate after-tax returns. And if you're in a high bracket, holding for 1+ years can cut your tax rate from 37% to 20%.
📐 The Formula Breakdown
Total Return = (Shares × Selling Price) - Sell Commission
Net Profit = Total Return - Total Investment
ROI = (Net Profit ÷ Total Investment) × 100%
Key insight: ROI is based on your total capital deployed (including fees), not just the stock price.
🎯 Real-World Example: The Day Trader's Trap
Scenario: You day trade with $10,000 capital. You make 200 trades per year, averaging a 1% gain per trade.
- Gross profit: 200 trades × $100 average gain = $20,000
- Fees: $0 commissions, but $20 per trade in spread costs = $4,000
- Taxable income: $16,000 (short-term gains)
- Taxes (32% bracket): $5,120
- Net profit: $16,000 - $5,120 = $10,880
Reality check: You made $10,880 on $10,000 capital (109% return). Sounds great, but you worked full-time for it. A passive S&P 500 investor made 10% ($1,000) while doing nothing.
💰 When Commissions Kill Your Gains
Commission impact by trade size (assuming $10 round-trip commission):
- $500 trade: 2% fee drag. You need a 12.2% gain just to break even.
- $1,000 trade: 1% fee drag. You need an 11% gain to break even.
- $5,000 trade: 0.2% fee drag. You need a 10.2% gain to break even.
- $20,000+ trade: <0.1% fee drag. Minimal impact.
Lesson: Small trades get destroyed by fees. If you're trading less than $5,000, use a zero-commission broker and avoid frequent trading.
🏆 How to Maximize Your Real Returns
- Use zero-commission brokers: Robinhood, Fidelity, Schwab, E*TRADE all offer $0 stock trades.
- Trade liquid stocks: Low spread = lower hidden costs. Stick to high-volume names.
- Hold >1 year for tax savings: Long-term capital gains rates are 0-20% vs ordinary income (10-37%).
- Minimize trades: Every trade costs money (even if hidden). Buy and hold beats day trading for 95% of people.
- Track ALL costs: Commissions, fees, spread, taxes. What you don't measure, you can't optimize.
❓ Frequently Asked Questions
How do you calculate stock profit?
Stock Profit = (Selling Price - Purchase Price) × Number of Shares - Total Fees. For example: You buy 100 shares at $50 and sell at $60. Gross profit = $1,000. But with $10 in fees (buy + sell), your actual profit is $990. Always subtract fees to get your real profit.
What is a good ROI for stocks?
The S&P 500 averages about 10% annual return over the long term. A good ROI depends on your time horizon and risk tolerance. For individual stocks: 15-20% is solid, 30%+ is excellent, 50%+ is exceptional. However, remember that higher returns often come with higher risk.
Do commissions really matter?
Yes, especially for small trades. A $10 commission on a $1,000 trade is 1% of your capital—you need an 11% gain just to break even. With zero-commission brokers (Robinhood, Fidelity, Schwab), this is less of an issue. But other fees (SEC fees, spread costs) still apply and can eat into profits.
How do I calculate capital gains for taxes?
Capital Gain = Sale Price - Purchase Price (per share) × Number of Shares. This is your taxable amount. Short-term gains (held ≤1 year) are taxed as ordinary income. Long-term gains (>1 year) are taxed at preferential rates (0%, 15%, or 20%). Fees reduce your taxable gain.