⚡ Quick answer
To calculate your capital gain, use the formula: (Exit Price - Entry Price) x Position Size.
Capital Gain Calculator
Calculate total capital gain and return percent for an investment.
📖 What it is
The Capital Gain Calculator helps you determine the total profit from an investment by assessing the difference between your purchase and selling prices. By using this tool, you can gain insights into your investment performance when you decide to exit your position.
To utilize the calculator, you need to input the entry price, exit price, and position size. The output will reveal your total capital gain and the percentage return, providing a clear indication of how well your investment has performed.
Keep in mind that this calculator does not account for external factors like broker fees and taxes, which can significantly influence your net gain. It is best used for straightforward calculations without the complexities of multiple lots or varying cost bases.
How to use
- Enter your entry price for the investment.
- Input the exit price at which you sold the investment.
- Specify the number of units or shares you purchased.
- Calculate total gain using the formula.
- Assess your return percentage if needed.
📐 Formulas
- Total Gain—Gain = (Exit Price - Entry Price) x Position Size
- Return Percentage—Return % = (Total Gain / (Entry Price x Position Size)) x 100
💡 Example
If you buy an asset for $50 and sell it for $72, with a quantity of 100, the calculation proceeds as follows:
1. Calculate total gain: (72 - 50) x 100 = 2,200.
2. Calculate return percentage: (2,200 / (50 x 100)) x 100 = 44%.
Real-life examples
Example 1: Stock Investment
Purchased 200 shares of a stock at $30 each and sold them for $50. Total Gain = (50 - 30) x 200 = $4,000.
Example 2: Real Estate Sale
Bought a property for $150,000 and sold it for $200,000. Total Gain = (200,000 - 150,000) x 1 = $50,000.
Scenario comparison
- Scenario A: High Gain—Invested $1000, sold for $2000, gain of $1000 (100% return).
- Scenario B: Break Even—Invested $1000, sold for $1000, gain of $0 (0% return).
- Scenario C: Loss—Invested $1000, sold for $800, loss of $200 (-20% return).
Common use cases
- Calculating profit from stock sales.
- Evaluating real estate investment returns.
- Assessing gains from cryptocurrency trades.
- Understanding capital gains for tax purposes.
- Comparing performance of different investment strategies.
How it works
The Capital Gain Calculator works by taking your selling price, subtracting your buying price, and multiplying by the quantity of the asset sold. The return percentage is then calculated by dividing the gain by the total amount invested, giving you a comprehensive view of your investment performance.
What it checks
This tool checks the realized investment performance at the moment of exit.
Signals & criteria
- Entry price
- Exit price
- Position size
- Return percent
Typical errors to avoid
- Omitting broker fees and taxes from effective gain.
- Using average cost incorrectly for multiple lots.
- Mixing gross and net prices.
Decision guidance
Trust workflow
Recommended steps after getting a result:
- Enter accurate entry and exit prices.
- Include the correct position size.
- Double-check for any omitted fees or taxes.
FAQ
FAQ
Can gain be negative?
Yes, then it represents a capital loss.
Is this after-tax gain?
No, tax is not deducted in this basic output.