wikiHow Capital Gains Calculator Calculating capital gains is important when you sell an asset, such as stocks, real estate, or other investments, for a profit. To calculate capital gains, you'll need to know the following information: * The purchase price of the asset * The sale price of the asset * Any expenses incurred during the purchase or sale of the asset, such as brokerage fees or commissions * The holding period of the asset (i.e., the amount of time between when you acquired it and when you sold it) Once you have this information, you can use the following formula to calculate capital gains: Capital Gains = (Sale Price - Purchase Price) - Expenses If the result is positive, you have a capital gain, and if the result is negative, you have a capital loss. Here's an example: Let's say you bought 100 shares of a stock for $50 per share, or a total of $5,000. You sold the shares 2 years later for $75 per share, or a total of $7,500. You paid a brokerage fee of $100 when you bought the shares and a commission of $150 when you sold them. To calculate your capital gains, you would use the following formula: Capital Gains = ($7,500 - $5,000) - ($100 + $150) Capital Gains = $2,250 So you have a capital gain of $2,250 on the sale of the stock. Page