Capital Gains Tax Calculator
When an asset is sold for more than it cost, the profit is a capital gain. Holding it over a year usually earns a lower long-term rate, while a shorter holding is taxed at the ordinary income rate.
After-tax profit
$4,250.00
- Capital gain
- $5,000.00
- Rate applied
- 1500.00%
- Estimated tax owed
- $750.00
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Gain = proceeds - cost basis; Tax = gain x rate; After-tax profit = gain - tax
- basis
- What you paid, including fees
- proceeds
- What you received on sale
- holding
- How long the asset was held
- rate
- The rate applied to the gain
How to check the result by hand
- 1
Establish the cost basis
Total everything paid to acquire the asset, including commissions and fees. Improvements can add to the basis and reduce the gain.
- 2
Note the sale proceeds
Use what you actually received after selling, net of any selling costs, so the gain reflects the real profit.
- 3
Compute the gain
Subtract the basis from the proceeds. A negative result is a capital loss, which can offset gains elsewhere.
- 4
Check the holding period
A holding of more than one year qualifies for the long-term rate. A year or less is short-term and taxed at the ordinary income rate.
- 5
Apply the rate and find the after-tax profit
Multiply the gain by the applicable rate to get the tax, then subtract it from the gain to see what you keep.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Capital Gains Tax page.