Stock Profit Calculator

Stock Profit Calculator

Use this calculator to determine the potential profit or loss from a stock trade, taking into account both purchase and selling prices, as well as brokerage commissions.











function calculateStockProfit() { var sharesBought = parseFloat(document.getElementById('sharesBought').value); var purchasePrice = parseFloat(document.getElementById('purchasePrice').value); var sellingPrice = parseFloat(document.getElementById('sellingPrice').value); var buyCommission = parseFloat(document.getElementById('buyCommission').value); var sellCommission = parseFloat(document.getElementById('sellCommission').value); var resultDiv = document.getElementById('stockProfitResult'); resultDiv.innerHTML = "; // Clear previous results // Input validation if (isNaN(sharesBought) || sharesBought <= 0) { resultDiv.innerHTML = 'Please enter a valid number of shares (greater than 0).'; return; } if (isNaN(purchasePrice) || purchasePrice <= 0) { resultDiv.innerHTML = 'Please enter a valid purchase price per share (greater than 0).'; return; } if (isNaN(sellingPrice) || sellingPrice <= 0) { resultDiv.innerHTML = 'Please enter a valid selling price per share (greater than 0).'; return; } if (isNaN(buyCommission) || buyCommission < 0) { resultDiv.innerHTML = 'Please enter a valid buy commission (0 or greater).'; return; } if (isNaN(sellCommission) || sellCommission 0) { roi = (netProfitLoss / totalCostIncludingCommissions) * 100; } // Display results var resultHTML = '

Calculation Results:

'; resultHTML += 'Total Initial Investment: $' + totalInvestment.toFixed(2) + "; resultHTML += 'Total Cost (including buy commission): $' + totalCostIncludingCommissions.toFixed(2) + "; resultHTML += 'Total Revenue (after sell commission): $' + totalRevenueAfterCommissions.toFixed(2) + "; resultHTML += 'Net Profit/Loss: = 0 ? 'green' : 'red') + ';">$' + netProfitLoss.toFixed(2) + ''; resultHTML += 'Return on Investment (ROI): = 0 ? 'green' : 'red') + ';">' + roi.toFixed(2) + '%'; resultDiv.innerHTML = resultHTML; } .stock-profit-calculator-container { font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif; background-color: #f9f9f9; padding: 25px; border-radius: 10px; box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1); max-width: 600px; margin: 30px auto; border: 1px solid #e0e0e0; } .stock-profit-calculator-container h2 { color: #2c3e50; text-align: center; margin-bottom: 20px; font-size: 28px; } .stock-profit-calculator-container p { color: #34495e; line-height: 1.6; margin-bottom: 15px; } .calculator-inputs label { display: block; margin-bottom: 8px; color: #34495e; font-weight: bold; font-size: 15px; } .calculator-inputs input[type="number"] { width: calc(100% – 22px); padding: 12px; margin-bottom: 15px; border: 1px solid #ccc; border-radius: 5px; font-size: 16px; box-sizing: border-box; } .calculator-inputs button { background-color: #28a745; color: white; padding: 14px 25px; border: none; border-radius: 5px; cursor: pointer; font-size: 18px; font-weight: bold; width: 100%; transition: background-color 0.3s ease; margin-top: 10px; } .calculator-inputs button:hover { background-color: #218838; } .calculator-results { margin-top: 30px; padding: 20px; background-color: #eaf7ed; border: 1px solid #d4edda; border-radius: 8px; color: #155724; } .calculator-results h3 { color: #2c3e50; margin-top: 0; margin-bottom: 15px; font-size: 22px; text-align: center; } .calculator-results p { margin-bottom: 10px; font-size: 16px; display: flex; justify-content: space-between; align-items: center; } .calculator-results p strong { flex-basis: 60%; text-align: left; } .calculator-results p span { flex-basis: 40%; text-align: right; font-weight: bold; } .calculator-results p span.green { color: #28a745; } .calculator-results p span.red { color: #dc3545; }

Understanding the Stock Profit Calculator

Investing in the stock market offers the potential for significant returns, but it also comes with risks. Accurately calculating your potential profit or loss before and after a trade is crucial for making informed decisions and managing your portfolio effectively. Our Stock Profit Calculator simplifies this process by taking into account all the key variables.

How Stock Profit is Calculated

The core of stock profit calculation involves comparing your total cost of acquiring shares against the total revenue generated from selling them. However, it's not as simple as just the purchase and selling price. Brokerage commissions, which are fees charged by your broker for executing trades, play a significant role and can eat into your profits or deepen your losses.

Key Components of the Calculation:

  • Number of Shares: The total quantity of stock units you buy and sell.
  • Purchase Price per Share: The price at which you bought each individual share.
  • Selling Price per Share: The price at which you sold each individual share.
  • Brokerage Commission (Buy): The fee paid to your broker when you purchase the shares. This adds to your total cost.
  • Brokerage Commission (Sell): The fee paid to your broker when you sell the shares. This reduces your total revenue.

The Calculation Process Explained

  1. Total Initial Investment: This is simply the number of shares multiplied by the purchase price per share.
  2. Total Cost (including buy commission): Your initial investment plus any commission paid to your broker for the purchase. This represents your true cost basis for the trade.
  3. Total Revenue (before sell commission): The number of shares multiplied by the selling price per share.
  4. Total Revenue (after sell commission): Your total revenue before commissions minus any commission paid to your broker for the sale. This is the actual cash you receive from the sale.
  5. Net Profit/Loss: This is the final figure, calculated by subtracting your Total Cost (including buy commission) from your Total Revenue (after sell commission). A positive number indicates a profit, while a negative number indicates a loss.
  6. Return on Investment (ROI): This percentage tells you how efficient your investment was. It's calculated by dividing the Net Profit/Loss by the Total Cost (including buy commission) and multiplying by 100. A higher ROI means a better return relative to the capital invested.

Example Scenario:

Let's say you bought 100 shares of Company X at $50.00 per share, paying a $7.95 buy commission. Later, you sold all 100 shares at $55.00 per share, incurring another $7.95 sell commission.

  • Total Initial Investment: 100 shares * $50.00/share = $5,000.00
  • Total Cost (including buy commission): $5,000.00 + $7.95 = $5,007.95
  • Total Revenue (before sell commission): 100 shares * $55.00/share = $5,500.00
  • Total Revenue (after sell commission): $5,500.00 – $7.95 = $5,492.05
  • Net Profit/Loss: $5,492.05 – $5,007.95 = $484.10 (Profit)
  • Return on Investment (ROI): ($484.10 / $5,007.95) * 100 = 9.67%

As you can see, even small commissions can impact your overall profit, especially on smaller trades. This calculator helps you visualize these impacts clearly.

Why Use This Calculator?

  • Pre-Trade Analysis: Estimate potential profits or losses before executing a trade, helping you set realistic expectations and stop-loss/take-profit levels.
  • Post-Trade Review: Accurately assess the performance of your completed trades, understanding the true impact of commissions.
  • Commission Awareness: Highlight how brokerage fees affect your bottom line, encouraging you to choose cost-effective brokers or strategies.
  • Risk Management: Better understand the financial implications of your trading decisions.

While this calculator provides a clear financial picture of your stock trades, remember that it does not account for taxes (capital gains), dividends received, or other potential fees. Always consult with a financial advisor for personalized investment advice.

Leave a Reply

Your email address will not be published. Required fields are marked *