How It Works
The calculator subtracts cost basis from sale proceeds to find the gain or loss. For a positive gain, it multiplies the gain by the assumed tax rate you enter.
The calculator starts with sale proceeds and subtracts your cost basis to estimate a capital gain or loss. For a gain, it applies the tax rate you enter to illustrate the potential tax amount.
Actual U.S. capital-gains tax can depend on whether the gain is short-term or long-term, taxable income, filing status, deductions, state taxes, investment type, and other rules. This tool intentionally uses a user-supplied rate rather than pretending one rate applies to everyone.
Formula
- S — Sale proceeds
- B — Cost basis
- G — Capital gain
- t — Assumed tax rate
Example
Example inputs: Cost basis $10,000, sale proceeds $15,000, assumed tax rate 15%.
Result: Capital gain: $5,000. Illustrative tax at 15%: $750.
Frequently Asked Questions
Is 15% the capital-gains tax rate for everyone?
No. The actual rate depends on circumstances including income, filing status, holding period, and applicable federal and state rules.
Does this distinguish short-term and long-term gains?
No. The calculator applies the rate you enter. In the U.S., short-term gains are generally taxed differently from long-term gains, so use a rate appropriate to your situation for an estimate.
Does the result include state capital-gains tax?
No. State treatment varies by jurisdiction. The result uses only the tax rate you enter and does not calculate a separate state liability.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.