Stock calculator calculates the profit or loss you have incurred while trading the stocks. It takes account of the purchase price and selling price of stocks and figures out the stock return.

Simply put, stock profit calculator figures out how much money you will gain based on the transactions of stocks. Stock value calculator also enables you to determine the ROI (Return on Investment) and break-even price through calculation.

You can also use our earnings per share calculator** **if you are more interested in seeing how much you have earned by selling individual shares.

## What are Stocks?

In terms of fundamental definition, stocks are a kind of certificates, which enable you to have partial ownership of the relevant company, as long as you own those stocks.

For instance, if you buy around 500 shares of a company that has released a total of *10000 *shares, then you are the owner of *5%* capital of the company.

Stocks are also known as shares and commodities in the stock market.

### Types of stocks

There are two types of stocks.

**Common stocks**

The person owning the first type has share in company’s profit. He/she has a right to participate in the meeting of shareholders and vote in the meeting as well.

**Preferred stocks**

Preferred stock holders are entitled to receive dividends before common shareholders. There is no voting right for shareholders of preferred stocks.

## How to calculate stock profit/loss?

In simple terms, the difference between the selling price and buying price of stocks determines the profit or loss incurred. Stock profit or loss can be calculated using the below formula.

### Stock profit/loss formula

**Profit = [(Selling Price * No. of Stocks) – Selling commission] – [(Buying Price * No. of Stocks) + Buying Commission) **

If the resulted profit comes in a negative value, it means you are selling stocks in the loss. In addition to the formula given above,

### Formula to calculate ROI

ROI = Profit / [(Buying Price * No. of Shares) + Buying commission]

### Break-even price formula

Break-even Price = [(Buying price * No. of Stocks) + Buying commission] / [No. of Stocks * (1 - % Selling commission)]

Our stock investment calculator is capable of calculating all the critical metrics, including profit, ROI, break-even price. You can also figure out net buying and net selling amounts using our stock return (price) calculator.