Stock Profit Calculator

What is a Stock Profit Calculator?

A Stock Profit Calculator is a financial tool used to determine the potential profit or loss from a stock investment. It takes into account the number of shares purchased, the buy and sell prices per share, and any associated commissions to provide a comprehensive view of the investment's performance.

The Stock Profit Formula

The formula for calculating stock profit or loss is:

\[ \begin{align} \text{Investment} &= (\text{Shares} \times \text{Buy Price}) + \text{Buy Commission} \\ \text{Sale Proceeds} &= (\text{Shares} \times \text{Sell Price}) - \text{Sell Commission} \\ \text{Profit/Loss} &= \text{Sale Proceeds} - \text{Investment} \\ \text{Profit/Loss Percentage} &= \frac{\text{Profit/Loss}}{\text{Investment}} \times 100\% \end{align} \]

Where:

• Shares: Number of shares purchased
• Buy Price: Price per share at purchase
• Sell Price: Price per share at sale
• Buy Commission: Fee paid when buying shares
• Sell Commission: Fee paid when selling shares

Step-by-Step Stock Profit Calculation

1. Calculate the total investment by multiplying the number of shares by the buy price and adding the buy commission.
2. Calculate the sale proceeds by multiplying the number of shares by the sell price and subtracting the sell commission.
3. Determine the profit or loss by subtracting the total investment from the sale proceeds.
4. Calculate the profit/loss percentage by dividing the profit/loss by the total investment and multiplying by 100.

Example Calculation

Let's calculate the stock profit for the following scenario:

• Number of shares: 100
• Buy price: $50 per share
• Sell price: $55 per share
• Buy commission: $10
• Sell commission: $10

1. Investment = (100 × $50) + $10 = $5,010
2. Sale Proceeds = (100 × $55) - $10 = $5,490
3. Profit = $5,490 - $5,010 = $480
4. Profit Percentage = ($480 ÷ $5,010) × 100% = 9.58%

Visual Representation

The blue portion represents the initial investment ($5,010), and the green portion represents the profit ($480).