Stock Profit Calculator

How to Calculate Stock Profit or Loss

Calculating the profit or loss from a stock investment is crucial for evaluating your investment performance. This guide will walk you through the process of calculating stock profit or loss.

Stock Profit/Loss Formula

The formulas for calculating stock profit or loss are:

$$\text{Total Cost}=(\text{Purchase Price}\times \text{Number of Shares})+\text{Commission Fees}$$

$$\text{Total Revenue}=(\text{Sale Price}\times \text{Number of Shares})-\text{Commission Fees}$$

$$\text{Profit/Loss}=\text{Total Revenue}-\text{Total Cost}$$

$$\text{Profit/Loss Percentage}=\frac{\text{Profit/Loss}}{\text{Total Cost}}\times 100\mathrm{\%}$$

Calculation Steps

1. Calculate the total cost of the investment, including purchase price and commission fees.
2. Calculate the total revenue from selling the shares, subtracting any commission fees.
3. Subtract the total cost from the total revenue to get the profit or loss.
4. Calculate the profit/loss percentage by dividing the profit/loss by the total cost and multiplying by 100.

Example Calculation

Let's calculate the profit or loss for the following stock investment:

• Purchase Price: $50 per share
• Sale Price: $60 per share
• Number of Shares: 100
• Commission Fees: $10 (for both buying and selling)

Step 1: Calculate Total Cost

$$\text{Total Cost}=(50\times 100)+10=5,010$$

Step 2: Calculate Total Revenue

$$\text{Total Revenue}=(60\times 100)-10=5,990$$

Step 3: Calculate Profit/Loss

$$\text{Profit/Loss}=5,990-5,010=980$$

Step 4: Calculate Profit/Loss Percentage

$$\text{Profit/Loss Percentage}=\frac{980}{5,010}\times 100\mathrm{\%}=19.56\mathrm{\%}$$

Therefore, the profit from this stock investment is $980, which represents a 19.56% gain.

Visual Representation

This bar chart illustrates the purchase price, sale price, and profit per share for the example calculation. It provides a clear visual representation of the investment's performance.