This Stock Profit Calculator helps you determine the potential profits or losses from your stock investments. By inputting the purchase and sale prices, as well as optional trading fees and taxes, you will receive a detailed analysis of your financial outcome.

The calculator accounts for all relevant factors and provides you with the exact calculation, enabling you to make informed investment decisions.

## Stock Profit Calculator

## Calculating Stock Profit: Formula & Explanation

When trading stocks, it is crucial to understand the potential profit or loss from your investments. The profit from a stock investment can be calculated using a simple formula that takes into account various factors, including the purchase and sale price, trading fees, and taxes.

### Formula for Calculating Stock Profit

The general formula to calculate the profit or loss from a stock investment is:

\( \text{Profit/Loss} = (\text{Sale Price} – \text{Purchase Price}) \times \text{Number of Shares} – \text{Trading Fees} – \text{Taxes} \)Where:

**Sale Price:**The price at which the shares are sold.**Purchase Price:**The price at which the shares were bought.**Number of Shares:**The number of shares bought and sold.**Trading Fees:**The costs incurred from buying and selling the shares.**Taxes:**The taxes levied on the profit.

### Example of Calculating Stock Profit

Suppose you bought 100 shares of a company at $50 per share and later sold them at $70 per share. The total trading fees are $100, and the tax rate on gains is 25%.

#### Calculation Process:

**Calculate Gross Profit:**

\( \text{Gross Profit} = (\text{Sale Price} – \text{Purchase Price}) \times \text{Number of Shares} \)
\( = (70 – 50) \times 100 = $2000 \)

**Deduct Trading Fees:**

\( \text{Profit after Fees} = \text{Gross Profit} – \text{Trading Fees} \)
\( = 2000 – 100 = $1900 \)

**Calculate Taxes:**

\( \text{Tax Amount} = \text{Profit after Fees} \times \left(\frac{\text{Tax Rate}}{100}\right) \)
\( = 1900 \times 0.25 = $475 \)

**Calculate Net Profit:**

\( \text{Net Profit} = \text{Profit after Fees} – \text{Tax Amount} \)
\( = 1900 – 475 = $1425 \)

In this example, the final profit after deducting trading fees and taxes is $1425.

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