Enter the purchase price, selling price, and the number of shares into the calculator to determine your gain from selling shares.
Share Gain Formula
The following formula is used to calculate the gain from selling shares:
G = (SP - PP) * N
Variables:
- G is the gain from selling shares ($)
- SP is the selling price per share ($)
- PP is the purchase price per share ($)
- N is the number of shares sold
To calculate the gain from selling shares, subtract the purchase price per share from the selling price per share, then multiply by the number of shares sold.
What is Share Gain?
Share gain is the profit made from selling shares of stock at a higher price than they were purchased. It is an important metric for investors to determine the success of their investment decisions. The gain can be realized when the shares are sold and is subject to capital gains tax, depending on the duration the shares were held and other factors.
How to Calculate Share Gain?
The following steps outline how to calculate the Share Gain.
- First, determine the purchase price per share (PP) in dollars.
- Next, determine the selling price per share (SP) in dollars.
- Next, determine the number of shares sold (N).
- Next, gather the formula from above = G = (SP – PP) * N.
- Finally, calculate the Share Gain (G) in dollars.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
purchase price per share (PP) = $30
selling price per share (SP) = $40
number of shares sold (N) = 100
