How to Calculate Stock Profit, Return and Break-Even Price

Published October 12, 2026

Free tool: Stock Profit Calculator→

Working out what a stock trade earned looks simple: sell price minus buy price. But commissions, dividends, how long you held the shares and taxes all change the real answer. This guide shows how to calculate profit, return and break-even price properly, using the free Stock Profit Calculator.

The basic calculation

• Total cost = shares × buy price + buy commission
• Sale proceeds = shares × sell price − sell commission
• Profit = proceeds + dividends received − total cost
• Return = profit ÷ total cost

Example: you buy 100 shares at $50 and sell at $65, with no fees:

• Cost: $5,000; proceeds: $6,500
• Profit: $1,500, a 30% return

Fees, dividends and time

Now say you paid a $5 commission each way, collected $1.20 a share in dividends and held the shares for 200 days:

• Cost: $5,005; proceeds: $6,495; dividends: $120
• Profit: $1,610, a 32.17% return
• Yearly (annualized) return: about 66%, because you earned 32% in just over half a year

The annualized figure lets you compare trades of different lengths, but a short, lucky trade can look spectacular. Don't expect to repeat it every year.

Break-even and target prices

The break-even price is the selling price at which you get back exactly what you put in, after fees and dividends: in the second example, $48.90 a share, below the $50 you paid, thanks to the dividends.

You can also work backward from a goal. For a 25% return, you'd need to sell at about $62.50 in the first example, or $61.41 in the second.

Taxes

Profits are usually taxed as capital gains. In the US, shares held more than a year qualify for lower long-term rates; shares held a year or less are taxed like ordinary income. At a 15% rate, the second example's profit of $1,610 leaves $1,368.50 after tax. Losses can offset gains, so keep records of every trade.

For returns over several years, see CAGR Formula Explained, and for buys at different prices, see How to Calculate Your Average Cost per Share.

How to use the Stock Profit Calculator

1. Open the Stock Profit Calculator.
2. Enter the number of shares, the buy price and the sell price.
3. Add the buy and sell commissions and any dividends per share you received.
4. Enter the days held for a yearly return, an optional tax rate, and a target return.
5. Read the results: the profit, return and yearly return, the total cost, the sale proceeds, the break-even sell price and the price for your target return, with a chart of profit at different selling prices and a breakdown of where your money ends up.

Frequently asked questions

How do I calculate profit on a stock?

Subtract what you paid (shares × buy price + fees) from what you received (shares × sell price − fees), and add any dividends. 100 shares bought at $50 and sold at $65 is a $1,500 profit.

What is the break-even price of a stock?

The selling price at which you recover your cost after commissions and dividends. With $5 fees each way and $1.20 of dividends, 100 shares bought at $50 break even at $48.90.

How do I calculate the annual return on a stock?

Compound the return over the holding period to a full year: (1 + return)^(365 ÷ days) − 1. A 32.17% gain in 200 days is about 66% a year.