Stock Profit & Tax Calculator

Understanding Gross vs. Net

Your Gross Profit is simply the difference between your sell price and buy price. However, you never get to keep all of it. Between brokerage commissions, regulatory fees, and capital gains tax, your Net Profit can be 20-30% lower than your gross profit.

Short-Term vs. Long-Term Tax

In many countries, if you hold a stock for less than a year, you pay Short-Term Capital Gains Tax (usually your income tax bracket). Holding for more than a year often grants you a lower Long-Term rate (e.g., 0%, 15%, or 20%).

Brokerage and Commissions

1. Flat Fee: Some brokers charge a flat $5 or $10 per trade.
2. Per Share: Others charge a few cents per share ($0.005/share).
3. Percentage: Traditional full-service brokers may charge 0.1% to 0.5% of the total trade value.
4. Spread: "Zero-fee" brokers often hide their cost in a wider buy/sell spread.