Stock Profit Calculator

Stock profit is calculated by subtracting your total cost (purchase price times shares plus commissions) from your total proceeds (sale price times shares minus commissions). The formula is:

Profit = (Sell Price × Shares - Sell Commission) - (Buy Price × Shares + Buy Commission)

For example, if you bought 100 shares at $50 and sold them at $75, your gross profit would be $2,500. After accounting for any commissions, you get your net profit.

Return on Investment (ROI) expresses this profit as a percentage of your initial cost, making it easy to compare different trades regardless of size. Annualized return adjusts the ROI to reflect a yearly rate, which is useful for comparing investments held for different time periods.

Annualized return converts your total return into an equivalent yearly rate, allowing fair comparison between investments held for different durations. A 50% gain over 5 years is very different from a 50% gain over 6 months.

The formula is: Annualized Return = (Ending Value / Beginning Value)^(1/Years) - 1

For context, the S&P 500 has delivered roughly 10% annualized returns historically (before inflation). If your annualized return consistently exceeds this benchmark, your stock picks are outperforming the broader market.

Most major online brokers now offer commission-free trading for stocks and ETFs, including Fidelity, Charles Schwab, and Robinhood. However, commissions still apply in several situations:

• Options trading: Typically $0.50-$0.65 per contract.
• OTC stocks: Some brokers charge fees for over-the-counter stocks.
• International stocks: Foreign exchange and settlement fees may apply.
• Full-service brokers: Traditional brokers may still charge per-trade fees.

Even small commissions add up over time, especially for frequent traders. A $5 round-trip commission on a $500 trade is a 1% drag on returns before the stock even moves.