Why is a stock profit calculator necessary?

Assists you in calculating your net profits after commissions paid to your broker for purchasing and selling when trading on the stock market. Our free stock profit calculator will help you determine your return on investment.

You have a deeper understanding of your prospective profit targets and stop loss for the shares of the company you desire to trade. Our stock profit calculator will assist you in managing your risk-to-reward ratio by calculating your return on investment.

You can determine the optimal initial investment by entering the total value of the stock you desire to purchase along with your preferred purchase price and selling price to calculate stock profit or loss. Additionally, you can view your total capital at your stock's goal price as well as your capital at your stop loss price

You can also use the stock calculator to determine the optimal buying and selling price to sell your favorite stocks.

Our online calculator may be used to calculate stock profit for Penny stocks, a feature not offered by most internet financial calculators.

As an investor or trader, you are putting your capital at risk. Capital preservation is the essential component of being a trader or an investor. The volatility of stock prices presents an opportunity to buy low at the net price and sell much higher at the desired sale price. Investment returns depend on an investor's risk tolerance, trading strategy, and whether or not they want to invest for the short or long term.

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Our calculator is first broken down to allow inputs for Entry and Exit:

Entry on your initial investment.

This depends on your:

  1. Buy price
  2. Position size - the number of shares or vice versa, the total value of the initial investment. If you go by total value, our calculator will automatically calculate the number of shares you can purchase.
  3. Next, can enter the buying commission that your broker would charge. Again, the calculator is flexible and allows you to enter either a percentage-based or flat fee-based commission.

Formula to calculate Entry Price/Buying Price

Initial Capital = (BP x PS) + (BC)

BP = Buying price

PS = Position size

BC = Buying Commission

Exit on your Target Price

Target price - The amount/share price you wish to sell your stock investments.

  1. Stop Loss - this is the price; you would sell your stock to exit out of your position if the trade does not go according to plan. This is your risk management plan to preserve your capital.
  2. Selling Commission- A fee your broker would charge when you're selling stocks on the stock market.
  3. Capital at Target Price/Sell Price- This is the value of the total investment at your desired sell share price after your initial investment.

Formula to calculate Exit Price/Selling price

Capital at Target = (TP x PS) - (SC)

TP = Target price

SP = Selling price

PS = Position size

SC = Selling commission

Multiple inputs

  • Purchase price/Stock price/Buying price

  • Buying commission: Percentage amount or Fixed Cost
  • Position size: Quantity of stocks or value of initial total investment amount you would like to purchase
  • Sell price/ Target price.
  • Stop Loss/Potential
  • Selling Commission: Percentage amount or Fixed Costs
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Definitions

  • Purchase price/Stock price – This is the price at which you have bought or are planning to buy the stock.

  • Buying commission – this is the commission you must pay your stockbroker when purchasing a stock. Depending on your broker, this could be a Flat Fee or a percentage, and we offer the flexibility for you to pick either.
  • Position size: Quantity of stocks or value of the initial investment.
  • Selling price/ Target price: the price you are planning for your stock.
  • Stop Loss: This is the selling price you would sell in a worst-case scenario. This is a safety measure where if it hits this price, you will sell your stock, the minimum value you would let the stock price hit before you exit the position. So, our calculator allows you to calculate your Loss in the worst-case scenario.
  • Selling Commission: Yes, we know, horrific isn’t it that you must also pay a hefty commission when exiting? Our calculator lets you account for this, so you know your absolute return from any given position.

Our Stock calculator helps you calculate your profit or Loss for your stock investment.

Calculator for stocks

When it comes to investing in stocks, calculators are extremely useful tools to help determine your profitability and loss. You can use the calculator to calculate what kind of return you can make from your initial investment. This, in return, can assist in finding out what your initial principal investment should be.

Average Stock Price Calculator

When you purchase the same stock at different prices, you need to use this calculator to determine your average purchase price. Averaging down when purchasing stocks is a great way to bring your purchase down during market volatility if you believe in investing in the company’s future and financial potential. It can help you with determining your selling price to make the trade profitable if the initial purchase of the stock was priced too high when bought.

How to calculate Stock Price

Market participants determine a stock's price and base its price on accounting for multiple factors. One particularly important factor determining a stock price is the macroeconomic conditions of the broader market of that company. Another factor to consider is the financials of the company and the future earning potential/valuation of the company.

Profit on Stock

Investment in stocks can be risky. If you have a plan when investing, you can make a profit from stocks. Capital gains or dividend payouts are two main ways to profit from stock investment. Capital gains are when you sell your stock at a higher price than your initial purchase price. A dividend payout is when an underlying company of the stock you own pays you a portion of its net profit.