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Analyzing Your Stock Trades: Profit & Loss

The Stock Profit/Loss Calculator is an essential tool for investors and traders to accurately determine the financial outcome of their stock transactions. It helps you calculate not just the gross profit or loss, but also the net result after accounting for brokerage commissions.

📈 How to Use the Calculator

To calculate the profit or loss from a stock trade:

1. Enter Buy Price per Share: Input the price at which you purchased each share.
2. Enter Sell Price per Share: Input the price at which you sold each share.
3. Enter Number of Shares: Specify the total number of shares involved in the transaction.
4. Select Commission Type: Choose whether your buy and sell commissions are a "Fixed Amount ($)" or a "Percentage (%)" of the transaction value. This selection applies to both buy and sell commissions.
5. Enter Buy Commission Value: Based on your selection above, input the fixed dollar amount or the percentage for the buy commission.
6. Enter Sell Commission Value: Similarly, input the fixed dollar amount or the percentage for the sell commission.
7. Calculate: Click the "Calculate Profit/Loss" button.

The calculator will display a "Trade Summary" which serves as a detailed breakdown of the calculation. This summary includes Total Buy Cost (incl. commission), Total Sell Value (net commission), Gross Profit/Loss (before commissions), Total Commissions Paid, Net Profit/Loss, and the Return on Investment (ROI) percentage.

📊 The Calculation Logic (Displayed in Summary)

The "Trade Summary" effectively shows the calculation steps by detailing each component:

• Total Buy Value (Shares Only): Buy Price per Share × Number of Shares
• Actual Buy Commission: Calculated based on whether "Fixed Amount" or "Percentage" was selected for the commission type.
  • If Percentage: (Total Buy Value × Buy Commission Percentage) / 100
• Total Buy Cost: Total Buy Value (Shares Only) + Actual Buy Commission
• Total Sell Value (Before Commission): Sell Price per Share × Number of Shares
• Actual Sell Commission: Calculated based on the selected commission type.
  • If Percentage: (Total Sell Value (Before Commission) × Sell Commission Percentage) / 100
• Total Sell Value (Net of Commission): Total Sell Value (Before Commission) - Actual Sell Commission
• Gross Profit/Loss: Total Sell Value (Before Commission) - Total Buy Value (Shares Only)
• Total Commissions Paid: Actual Buy Commission + Actual Sell Commission
• Net Profit/Loss: Total Sell Value (Net of Commission) - Total Buy Cost
• Return on Investment (ROI %): (Net Profit/Loss / Total Buy Cost) × 100

💡 Frequently Asked Questions (FAQ)

Why is it important to include commissions?

Commissions are a direct cost of trading and can significantly impact your net returns. A trade that looks profitable on paper (gross profit) can actually be a loss after accounting for buy and sell commissions. This calculator helps you see the true outcome.

Does this calculator account for taxes?

No. This tool calculates your profit or loss before taxes. Any profits (capital gains) from selling stock are typically subject to taxation, and the tax rate can depend on how long you held the stock and your income level. Always consult a tax professional for tax-related questions.