Calculate Stock

Stock Profit/Loss Calculator

Use this calculator to determine the net profit or loss from a stock trade, including dividends and commissions. Understanding your actual return is crucial for evaluating investment performance.

function calculateStockProfitLoss() { var sharesBought = parseFloat(document.getElementById("sharesBought").value); var buyPrice = parseFloat(document.getElementById("buyPrice").value); var sellPrice = parseFloat(document.getElementById("sellPrice").value); var totalDividends = parseFloat(document.getElementById("totalDividends").value); var buyCommission = parseFloat(document.getElementById("buyCommission").value); var sellCommission = parseFloat(document.getElementById("sellCommission").value); // Validate inputs if (isNaN(sharesBought) || sharesBought <= 0) { alert("Please enter a valid number of shares bought."); return; } if (isNaN(buyPrice) || buyPrice < 0) { alert("Please enter a valid purchase price per share."); return; } if (isNaN(sellPrice) || sellPrice < 0) { alert("Please enter a valid sale price per share."); return; } if (isNaN(totalDividends) || totalDividends < 0) { alert("Please enter a valid total dividends received."); return; } if (isNaN(buyCommission) || buyCommission < 0) { alert("Please enter a valid buy commission."); return; } if (isNaN(sellCommission) || sellCommission 0) { roi = (netProfitLoss / totalCost) * 100; } // Display results document.getElementById("totalCostResult").innerHTML = "$" + totalCost.toFixed(2); document.getElementById("totalRevenueResult").innerHTML = "$" + totalRevenue.toFixed(2); document.getElementById("netProfitLossResult").innerHTML = "$" + netProfitLoss.toFixed(2); document.getElementById("roiResult").innerHTML = roi.toFixed(2) + "%"; }

Understanding Stock Profit and Loss

Investing in the stock market involves buying and selling shares of companies with the goal of making a profit. However, calculating your true profit or loss isn't as simple as just comparing the buy and sell prices. You must also account for other factors like dividends and trading commissions.

Key Components of Stock Profit/Loss:

• Number of Shares Bought: The quantity of stock units you acquired.
• Purchase Price per Share: The price you paid for each share when you bought them.
• Sale Price per Share: The price you received for each share when you sold them.
• Total Dividends Received: Any cash distributions paid out by the company to its shareholders while you owned the stock. Dividends increase your overall return.
• Buy Commission: Fees paid to your broker when you purchase shares. These add to your total cost.
• Sell Commission: Fees paid to your broker when you sell shares. These also add to your total cost, reducing your net proceeds.

How the Calculation Works:

The calculator uses the following formulas:

1. Total Cost of Investment: This is the sum of the total amount spent on buying shares (Number of Shares Bought × Purchase Price per Share) plus any buy and sell commissions. Even though sell commission is paid at sale, it's a cost associated with the entire trade.
2. Total Revenue from Sale & Dividends: This is the sum of the total amount received from selling shares (Number of Shares Bought × Sale Price per Share) plus any dividends you collected during the holding period.
3. Net Profit/Loss: This is simply your Total Revenue minus your Total Cost of Investment. A positive number indicates a profit, while a negative number indicates a loss.
4. Return on Investment (ROI): This metric expresses your net profit or loss as a percentage of your initial investment cost. It's calculated as (Net Profit/Loss / Total Cost of Investment) × 100. ROI helps you compare the efficiency of different investments.

Example Scenario:

Let's say you bought 100 shares of Company X at $50.00 per share. You paid a $5.00 buy commission. During the time you held the stock, you received $50.00 in dividends. Later, you sold all 100 shares at $60.00 per share and paid another $5.00 sell commission.

• Total Cost: (100 shares * $50.00/share) + $5.00 (buy commission) + $5.00 (sell commission) = $5,000 + $10 = $5,010.00
• Total Revenue: (100 shares * $60.00/share) + $50.00 (dividends) = $6,000 + $50 = $6,050.00
• Net Profit/Loss: $6,050.00 – $5,010.00 = $1,040.00 (Profit)
• ROI: ($1,040.00 / $5,010.00) * 100 = 20.76%

This example demonstrates how commissions, even small ones, and dividends can impact your overall investment outcome. Always consider all these factors for an accurate assessment of your stock trades.