Enter the total number of shares purchased, the purchase price, commission cost, and the selling price, to calculate the total profit and ROI %.
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Stock Profit Formula
The following formula can be used to calculate the profit from buying and selling a stock.
Profit = [(S * N) – C] – [(P * N) + C]
- Where S is the selling price of the stock
- N is the number of shares sold
- C is the %commission taken by the broker for buying and selling
- P is the purchase price of the stock
Stock Profit Definition
Stock profit is defined as the total profit earned from the purchase and sale of a stock over some time period.
How to calculate stock profit?
How to calculate stock profit
- First, determine the purchase price of the stock
Look at the current price of the stock or the past price they were purchased at through your broker.
- Next, determine the number of shares purchased
This is as simple as using the number of shares you plan to sell or had bought previously.
- Next, determine the % commission taken by the broker
This will typically be the same for purchasing and selling the stock.
- Determine the selling price
Check the current price of the stock you plan to sell.
- Calculate the stock profit
Enter the information from above into the formula or calculator.
Stock profit is the amount of money earned from buying and then selling a stock at a later date.
Almost all brokers take a commission on buying and selling stocks. This is typically a % of the total stock price.
The key here is the buy low and sell high, or at least that’s the running joke for how simple it is. This is somewhat true since it’s the only way to make a profit on anything let alone a stock.