1. What is Stock Profit Calculation?

The stock profit calculation determines the net gain or loss from a stock transaction, accounting for the difference between buy and sell prices, number of shares, and any associated fees.

2. How Does the Calculator Work?

The calculator uses the stock profit formula:

Where:

• \( \text{Sell Price} \) — Price per share when sold
• \( \text{Buy Price} \) — Price per share when purchased
• \( \text{Shares} \) — Number of shares traded
• \( \text{Fees} \) — Transaction fees and commissions

Explanation: The formula calculates the gross profit (price difference times shares) then subtracts any transaction costs to get net profit.

3. Importance of Profit Calculation

Details: Accurate profit calculation is essential for investment analysis, tax reporting, and portfolio performance evaluation.

4. Using the Calculator

Tips: Enter the buy price, sell price, number of shares, and any fees. All values must be positive numbers. The calculator will show both dollar profit and percentage return on investment (ROI).

5. Frequently Asked Questions (FAQ)

Q1: Should I include dividends in profit calculations?
A: This calculator focuses on capital gains. For total return, you should add dividend income separately.

Q2: How are short sales calculated?
A: For short sales, reverse the buy/sell prices (enter the short sale price as "buy" and cover price as "sell").

Q3: What fees should I include?
A: Include all transaction costs - commissions, SEC fees, exchange fees, etc.

Q4: How is ROI calculated?
A: ROI is (Profit / Total Investment) × 100, where Total Investment = (Buy Price × Shares) + Fees.

Q5: Does this account for taxes?
A: No, this is pre-tax profit. Consult a tax professional for after-tax calculations.