Calculate Stock Profit/Loss

Enter your trade details to calculate your profit or loss.

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Dividend Income Calculator

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Break-Even Calculator

Find the price your stock needs to reach to break even after fees.

Dollar-Cost Averaging Calculator

Calculate the average cost of regular investments over time.

Stock Profit Formula

Net Profit = (Sell Price × Shares) - (Buy Price × Shares) - All Fees - Stamp Duty

Percentage Return = (Net Profit ÷ Total Investment) × 100

How to Calculate Stock Investment Returns

When investing in stocks and shares, understanding your actual profit or loss requires accounting for all costs. Here's what affects your real returns:

Cost Components

  • Purchase price - Price per share when you buy
  • Selling price - Price per share when you sell (or current market price)
  • Trading fees - Broker commissions for buying and selling
  • Stamp Duty - 0.5% tax on UK share purchases over £1,000
  • Spread - Difference between buy and sell price (built into prices)
  • Platform fees - Annual charges from your broker/platform

Example Calculation

Buy 500 shares at £8.00, sell at £10.50, with £5 fees each way:

Purchase cost500 × £8.00 = £4,000
Stamp Duty (0.5%)£4,000 × 0.5% = £20
Purchase fee£5
Total investment£4,025
Sale proceeds500 × £10.50 = £5,250
Less selling fee£5,250 - £5 = £5,245
Net profit£1,220
Return30.3%

Capital Gains Tax on Stock Profits

If your total capital gains exceed the annual allowance (£3,000 for 2025/26), you'll pay CGT on the excess. Basic rate taxpayers pay 10%, higher rate pay 20%. Shares held in an ISA or pension are exempt from CGT.

UK Capital Gains Tax on Shares 2025/26

When you sell shares at a profit, you may owe Capital Gains Tax (CGT). Understanding the rates and allowances is essential for tax-efficient investing.

Detail 2025/26 Tax Year
Annual Exempt Amount £3,000
Basic Rate (income up to £50,270) 10%
Higher/Additional Rate 20%
Shares in ISA Tax-free
Shares in Pension (SIPP) Tax-free

How to Reduce CGT on Shares

  • Use your ISA allowance - £20,000 per year, all gains tax-free
  • Bed and ISA - Sell shares, rebuy in ISA (crystallises any gain)
  • Use annual allowance - £3,000 tax-free gains each year
  • Transfer to spouse - Transfers between spouses are tax-free
  • Offset losses - Capital losses can offset gains in same or future years
  • Timing - Spread sales across tax years to use multiple allowances

UK Stamp Duty on Shares

When you buy UK shares electronically (most purchases), you pay Stamp Duty Reserve Tax (SDRT):

  • Rate: 0.5% of the purchase price
  • Threshold: Applies to purchases over £1,000
  • Automatically collected: Your broker handles this
  • Exemptions: AIM shares, certain growth markets, shares in ISAs and SIPPs

Example: Buying £10,000 of UK shares incurs £50 stamp duty (£10,000 × 0.5%).

Stamp Duty Exemptions

  • AIM shares - Alternative Investment Market stocks are exempt
  • ISA purchases - No stamp duty within an ISA wrapper
  • SIPP purchases - Pension investments are exempt
  • Overseas shares - Non-UK listed shares don't incur UK stamp duty
  • ETFs - Many ETFs (especially Irish-domiciled) are exempt

Tax-Free Investing with an ISA

A Stocks and Shares ISA lets you invest up to £20,000 per tax year with all gains and dividends completely tax-free. This is the most tax-efficient way for UK investors to hold shares long-term. There's no CGT, no dividend tax, and no reporting to HMRC.

UK Stock Trading Platforms

Choosing the right platform affects your costs and overall returns. Here's a comparison of popular UK options:

Platform Trading Fee Platform Fee Best For
Trading 212 Free Free Beginners, small amounts
Freetrade Free (standard) Free-£9.99/mo Mobile-first investors
InvestEngine Free (ETFs) Free-0.25% ETF investors
Interactive Investor £3.99-£5.99 £4.99-£11.99/mo Larger portfolios
AJ Bell £5-£10 0.25% (capped) Full-service investing
Hargreaves Lansdown £11.95 0.45% (capped) Research & tools

Choosing a Platform

For small portfolios (under £10,000), free trading platforms often make sense. For larger amounts, consider platforms with capped fees. Always check the total cost including platform fees, not just trading commissions.

Investment Strategies for UK Investors

Dollar-Cost Averaging (Pound-Cost Averaging)

Investing a fixed amount regularly regardless of price reduces the impact of volatility. You buy more shares when prices are low and fewer when high, potentially lowering your average cost over time.

Dividend Investing

Focus on shares that pay regular dividends for passive income. UK companies like Legal & General, BP, and Vodafone are popular for dividends. Reinvesting dividends (DRIP) can significantly boost long-term returns through compounding.

Index Investing

Instead of picking individual stocks, invest in index funds or ETFs that track markets like the FTSE 100 or S&P 500. This provides diversification at low cost and typically outperforms most active fund managers over time.

Value Investing

Look for undervalued shares trading below their intrinsic value. This requires analysis of company fundamentals like earnings, assets, and cash flow. Made famous by Warren Buffett.

Frequently Asked Questions

How do I calculate stock profit?
Stock profit = (Selling Price - Purchase Price) × Number of Shares - All Trading Fees - Stamp Duty. For example, buying 100 shares at £10 and selling at £15 with £10 total fees: (£15-£10) × 100 - £10 = £490 profit, which is a 49% return on your £1,010 investment.
Do I pay tax on stock profits in the UK?
Yes, stock profits are subject to Capital Gains Tax (CGT). The annual CGT allowance is £3,000 for 2025/26. Gains above this are taxed at 10% for basic rate taxpayers or 20% for higher rate. Shares held in an ISA or pension are completely exempt from CGT - a major tax advantage.
What is percentage return on stocks?
Percentage return = (Net Profit ÷ Total Investment) × 100. This shows your gain or loss as a percentage of what you invested, making it easy to compare different investments. A 20% return means you made £20 for every £100 invested.
What is stamp duty on UK shares?
Stamp Duty Reserve Tax (SDRT) is 0.5% of the purchase price when buying UK shares electronically. It's automatically collected by your broker. Purchases under £1,000 are exempt. AIM shares and shares bought within an ISA or SIPP are also exempt.
How can I invest in stocks tax-free in the UK?
Use a Stocks and Shares ISA. You can invest up to £20,000 per tax year, and all gains and dividends are completely tax-free - no CGT or dividend tax. This is the most tax-efficient way for UK investors to hold shares long-term.
What's the difference between realised and unrealised gains?
Unrealised gains (paper profits) are profits on shares you still hold - the difference between current price and your purchase price. Realised gains occur when you actually sell shares. You only pay CGT on realised gains, not paper profits. This is why timing of sales matters for tax planning.
DH

Reviewed by David Harper

CFA IMC CISI Level 6

Chartered Financial Analyst and Investment Management Certificate holder with 15+ years experience in UK investment management, portfolio analysis, and wealth planning. Member of CFA UK Society.

Last updated: 28 December 2025