Calculate Stock Profit/Loss
Enter your trade details to calculate your profit or loss.
Portfolio Tracker
Track multiple positions and calculate total portfolio performance.
| Stock | Shares | Buy (£) | Current (£) | Profit/Loss |
|---|---|---|---|---|
| £0.00 | ||||
| £0.00 | ||||
| £0.00 | ||||
| £0.00 |
Dividend Income Calculator
Calculate dividend income and yield from your holdings.
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 cost | 500 × £8.00 = £4,000 |
| Stamp Duty (0.5%) | £4,000 × 0.5% = £20 |
| Purchase fee | £5 |
| Total investment | £4,025 |
| Sale proceeds | 500 × £10.50 = £5,250 |
| Less selling fee | £5,250 - £5 = £5,245 |
| Net profit | £1,220 |
| Return | 30.3% |
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
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Last updated: 28 December 2025