How to use it
- Enter the purchase price.
- Enter the sale price.
- Click Calculate to see tax owed and net profit.
What it does – The Capital Gains Tax Calculator takes your purchase price, sale price and applies a flat 20% federal rate to the profit. Why it matters – Knowing the tax owed lets you see the true net profit, plan cash flow, and avoid surprises at filing. How to read the results – Tax owed shows the dollar amount you’ll pay to the IRS. Net profit is the sale price minus purchase price minus that tax. No state taxes are included, so add any local obligations separately. The tool updates instantly, so you can experiment with different sale scenarios and see how each change impacts your bottom line. You can also use the calculator to compare multiple assets, evaluate the impact of holding periods, or quickly verify a broker’s estimate. Because the rate is fixed, the math stays simple and reliable, making it ideal for both beginners and seasoned investors.
Pro tips
- Include any transaction fees in the purchase or sale price to avoid under‑reporting profit.
- Round prices to the nearest dollar before entering to keep the result clean.
- Enter the larger amount as the sale price; swapping values will give a negative profit.
- Remember the calculator excludes state taxes, so add those separately if applicable.
Real-life examples
- A freelance graphic designer sells a stock photo portfolio and wants to know the after‑tax earnings.
- An individual investor is closing a position in a tech stock and needs to budget for the tax bill.
- A small business owner liquidates equipment and needs to report capital gains on the sale.
Case study
Emily owned shares bought for $8,000 and sold them for $12,500. The calculator showed $900 tax (20% of $4,500 profit) and a net profit of $3,600, letting her allocate the cash for her next investment.