What Is Capital Gains Tax on Stocks?
When you sell shares for more than you paid, the profit is a capital gain, and most tax systems charge tax on that gain. This calculator gives a quick estimate of the tax you might owe on a stock sale based on your purchase price, sale price, the number of shares, and the capital gains tax rate that applies to you. Capital gains tax rates vary widely by country and by how long you held the asset, so enter the rate that fits your situation.
How to Use the Calculator
Enter the price you paid per share (buy price), the price you sold each share for (sell price), the total number of shares, and your applicable capital gains tax rate as a percentage. The tool calculates your total capital gain, the estimated tax, and your net profit after tax. A negative result means you made a capital loss, which may be deductible against other gains depending on your jurisdiction.
The Formula Explained
The capital gain is calculated as \((\text{Sell Price} - \text{Buy Price}) \times \text{Shares}\). The tax is then the gain multiplied by your rate divided by 100. Your net profit is simply the gain minus the tax.
$$\begin{gathered} \text{Tax} = \text{Gain} \times \frac{\text{CGT Rate (\%)}}{100} \\[1.5em] \text{where}\quad \text{Gain} = \left(\text{Sell Price} - \text{Buy Price}\right) \times \text{Shares} \end{gathered}$$
Worked Example
Suppose you bought 100 shares at $10 each and sold them at $15 each, with a 15% capital gains tax rate. The gain is \((15 - 10) \times 100 = \$500\). The tax is \(500 \times 0.15 = \$75\). Your net profit after tax is \(500 - 75 = \$425\).
FAQ
Is this calculator accurate for my country? It estimates tax using a single flat rate. Many countries use tiered rates, annual exemptions, and different short-term vs long-term rates, so use it as a guide and confirm with local rules.
What if I made a loss? If the sell price is below the buy price, the gain and tax will be negative, indicating a capital loss rather than a taxable gain.
Does it include brokerage fees? No. For a more precise figure, subtract trading commissions and fees from your proceeds before entering the numbers.
