How to Calculate the Profit or Loss on a Stock
When investing in stocks, the idea is to buy low and sell high. Easier said than done. But once you buy a stock, you can track its progress by having online access to your brokerage account or visiting a financial services news service or website. If the stock price is greater than when you purchased it, then it is making profit. Conversely, if it is trading for less, then it is losing you money. How much of a profit or loss depends on the difference in price and the amount of shares that you own when you sell the stock.
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Instructions
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Using a calculator, take the difference between the initial purchase price and selling price. For example, if you buy 100 shares of ABC company at $20.00 and you sell them at a later date for $23.72, the difference in price is $3.72.
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Multiply the price difference of $3.72 by the number of shares that you own, in this case it would be $3.72 times 100 shares. You made a profit of $372.00 on the shares of ABC company. If the share price declined by $3.72, then using the same formula would yield a loss of $372.00.
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Deduct brokerage fees and commissions from your calculation to get your net profit or loss.
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Tips & Warnings
Investing in stocks can be risky. Do as much research as possible before you invest. Consult with a financial services professional who can better assess your investment objectives.
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