finance calculator

Capital Gains Calculator

Estimate gains and tax impact from an asset sale.

Formula Verified by Dr. Elizabeth Vance, PhD

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Sale price$

Cost basis$

Selling costs$

Tax rate%

Results

Taxable gain

$45,000

Estimated tax$6,750

Net profit after tax$38,250

Net proceeds$138,250

Selling costs$5,000

Bookmark this Capital Gains Calculator

Tax rates and cost bases adjust annually. Save this page to recalculate net proceeds before executing asset sales.

Formula

Capital gains formula

Taxable gain = sale price - cost basis - selling costs

The taxable gain is the amount left after subtracting basis and selling costs from the sale price.

Step by step

How the calculation works

1Enter sale price, cost basis, selling costs, and estimated tax rate.
2The calculator estimates taxable gain before applying the tax rate.
3Results show estimated tax, net proceeds, and after-tax profit.

Example

Capital gains example

Selling an asset for $150,000 with a $100,000 basis and $5,000 selling costs leaves a $45,000 taxable gain before tax is applied.

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How to understand and use this calculator

How Capital Gains Taxes Work

A capital gain is the profit realized when an asset (such as stocks, mutual funds, real estate, or business assets) is sold for more than its original acquisition cost. The tax assessed on this profit is called the capital gains tax.

Calculating capital gains tax requires identifying your Cost Basis (usually the original purchase price plus improvements or transaction fees) and subtracting it from your Net Sales Price (sales price minus selling commissions).

Tax treatment depends on the asset type and how long you owned it before selling.

The Capital Gains Tax Formula

To calculate taxable gain, tax liabilities, and net after-tax proceeds, the tool applies the following equations:

$$\text{Taxable Gain} = \text{Sale Price} - \text{Cost Basis} - \text{Selling Costs}$$

$$\text{Estimated Tax} = \max(0, \text{Taxable Gain} \times \text{Tax Rate}\%)$$

$$\text{Net Proceeds} = \text{Sale Price} - \text{Selling Costs} - \text{Estimated Tax}$$

$$\text{Net Profit} = \text{Taxable Gain} - \text{Estimated Tax}$$

If the taxable gain is zero or negative (representing a capital loss), the tax liability is treated as zero, and the loss may potentially be used to offset other taxable gains in your tax return.

Holding Periods: Short-Term vs. Long-Term Gains

In many tax jurisdictions, capital gains are split into two categories based on holding duration:

Short-Term Capital Gains: Applied to assets held for one year or less. These gains are treated as ordinary income and taxed at your standard federal income tax bracket (up to 37% in the US).

Long-Term Capital Gains: Applied to assets held for more than one year. These qualify for preferential, lower tax brackets (0%, 15%, or 20% in the US) to encourage long-term investing.

Real Estate and Capital Gains Exclusions

Real estate sales have special capital gains tax rules. In the US, the Section 121 Exemption allows primary homeowners to exclude up to $250,000 (single filers) or $500,000 (married filing jointly) of capital gains from taxation, provided they lived in and owned the home for at least 2 of the 5 years prior to the sale.

Related concepts

Section 121

The IRS tax code section allowing capital gains exclusions on primary home sales.

Taxable Gain

The net profit on an asset sale that is subject to tax after subtracting cost basis and expenses.

Net Proceeds

The final cash amount received from a sale after all transaction fees and tax liabilities are paid.

Frequently Asked Questions

What is a capital gain?+

A capital gain is the profit earned when you sell an asset (like stock or real estate) for more than its original cost basis.

How do I calculate my capital gains tax?+

Subtract your cost basis and selling costs from the sale price to find the taxable gain, then multiply that gain by your capital gains tax rate.

What is cost basis?+

Cost basis is the total price paid to acquire an asset, including the purchase price plus transaction fees, commissions, and adjustments.

What is the tax rate for long-term capital gains?+

In the US, long-term rates are 0%, 15%, or 20% depending on your taxable income, which is significantly lower than ordinary income tax rates.

What is a capital loss and how does it help?+

A capital loss occurs when you sell an asset for less than its cost basis. You can use capital losses to offset capital gains, and deduct up to $3,000 of ordinary income annually.

Is primary home sales taxable?+

In the US, you can exclude up to $250,000 (single) or $500,000 (married) of capital gains on a primary home sale if you met the 2-out-of-5-years occupancy rules.

What is the Section 121 exclusion?+

A tax rule allowing primary homeowners to exclude a set amount of capital gains from the sale of their principal residence from federal tax.

Does this calculator apply to short-term gains?+

Yes. To model a short-term gain, input your ordinary federal income tax rate into the tax rate field.

Are selling fees tax-deductible?+

Yes. Selling costs (like broker fees, legal fees, and commissions) are subtracted from the sale price, directly reducing your taxable capital gain.

What is a 1031 exchange?+

A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting the proceeds from a rental property sale into a similar, new investment property.

How to understand and use this calculator

How Capital Gains Taxes Work

Tax treatment depends on the asset type and how long you owned it before selling.

The Capital Gains Tax Formula

To calculate taxable gain, tax liabilities, and net after-tax proceeds, the tool applies the following equations:

$$\text{Taxable Gain} = \text{Sale Price} - \text{Cost Basis} - \text{Selling Costs}$$

$$\text{Estimated Tax} = \max(0, \text{Taxable Gain} \times \text{Tax Rate}\%)$$

$$\text{Net Proceeds} = \text{Sale Price} - \text{Selling Costs} - \text{Estimated Tax}$$

$$\text{Net Profit} = \text{Taxable Gain} - \text{Estimated Tax}$$

If the taxable gain is zero or negative (representing a capital loss), the tax liability is treated as zero, and the loss may potentially be used to offset other taxable gains in your tax return.

Holding Periods: Short-Term vs. Long-Term Gains

In many tax jurisdictions, capital gains are split into two categories based on holding duration:

Short-Term Capital Gains: Applied to assets held for one year or less. These gains are treated as ordinary income and taxed at your standard federal income tax bracket (up to 37% in the US).

Long-Term Capital Gains: Applied to assets held for more than one year. These qualify for preferential, lower tax brackets (0%, 15%, or 20% in the US) to encourage long-term investing.

Real Estate and Capital Gains Exclusions

Related concepts

Section 121

The IRS tax code section allowing capital gains exclusions on primary home sales.

Taxable Gain

The net profit on an asset sale that is subject to tax after subtracting cost basis and expenses.

Net Proceeds

The final cash amount received from a sale after all transaction fees and tax liabilities are paid.

Frequently Asked Questions

What is a capital gain?+

A capital gain is the profit earned when you sell an asset (like stock or real estate) for more than its original cost basis.

How do I calculate my capital gains tax?+

Subtract your cost basis and selling costs from the sale price to find the taxable gain, then multiply that gain by your capital gains tax rate.

What is cost basis?+

Cost basis is the total price paid to acquire an asset, including the purchase price plus transaction fees, commissions, and adjustments.

What is the tax rate for long-term capital gains?+

In the US, long-term rates are 0%, 15%, or 20% depending on your taxable income, which is significantly lower than ordinary income tax rates.

What is a capital loss and how does it help?+

A capital loss occurs when you sell an asset for less than its cost basis. You can use capital losses to offset capital gains, and deduct up to $3,000 of ordinary income annually.

Is primary home sales taxable?+

In the US, you can exclude up to $250,000 (single) or $500,000 (married) of capital gains on a primary home sale if you met the 2-out-of-5-years occupancy rules.

What is the Section 121 exclusion?+

A tax rule allowing primary homeowners to exclude a set amount of capital gains from the sale of their principal residence from federal tax.

Does this calculator apply to short-term gains?+

Yes. To model a short-term gain, input your ordinary federal income tax rate into the tax rate field.

Are selling fees tax-deductible?+

Yes. Selling costs (like broker fees, legal fees, and commissions) are subtracted from the sale price, directly reducing your taxable capital gain.

What is a 1031 exchange?+

A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting the proceeds from a rental property sale into a similar, new investment property.

Capital Gains Calculator

Inputs

Results

Bookmark this Capital Gains Calculator

Capital gains formula

How the calculation works

Capital gains example

Learn more about this calculation

Capital Gains Tax Guide: Basis, Selling Costs, and After-Tax Sale Proceeds

Tax-Advantaged Accounts: 2026 Rules and Comparison

Tax Loss Harvesting Calculator

Roth Conversion Tax Calculator

Capital Gains Calculator

Inputs

Results

Bookmark this Capital Gains Calculator

Key output metrics

Sale price breakdown

Taxable gain allocation

How to understand and use this calculator

How Capital Gains Taxes Work

The Capital Gains Tax Formula

Holding Periods: Short-Term vs. Long-Term Gains

Real Estate and Capital Gains Exclusions

Related concepts

Frequently Asked Questions

Capital gains formula

How the calculation works

Capital gains example

Learn more about this calculation

Capital Gains Tax Guide: Basis, Selling Costs, and After-Tax Sale Proceeds

Tax-Advantaged Accounts: 2026 Rules and Comparison

Tax Loss Harvesting Calculator

Roth Conversion Tax Calculator

Key output metrics

Sale price breakdown

Taxable gain allocation

How to understand and use this calculator

How Capital Gains Taxes Work

The Capital Gains Tax Formula

Holding Periods: Short-Term vs. Long-Term Gains

Real Estate and Capital Gains Exclusions

Related concepts

Frequently Asked Questions