How to Calculate the Total Profit of a Stock Price

by Mark Kennan

Calculating your total profit lets you know how much money you made after concluding a transaction. Figuring your total profit on a stock investment requires knowing the purchase price and the sales price. However, trading stocks typically involves broker commissions and other fees, so you need to account for these costs when figuring the amount of extra cash you have after completing a transaction. On the bright side, some stocks pay dividends, which increase your total profit because they represent payments of the company's earnings directly to you.

1. Subtract the price at which you purchased the investment from the price at which you sold the investment to calculate your gain per share. For example, if you purchased a stock at $64 per share and sold it at $68.30 per share, you gained $4.30 per share.

2. Multiply your gains per share by the total number of shares you bought and sold. In this example, if you traded 175 shares, multiply $4.30 by 175 to find your total profit equals $752.50.

3. Subtract the cost of commissions and other fees from your profit. Continuing the example, if you paid $7 to buy and an additional $7 to sell, you subtract $14 from $752.50 to get $738.50.

4. Add any dividends you received while owning the stock to find your total profit after dividends and commissions. In this example, if you received $35 in dividends, your total profit after dividends and commissions is $773.50.

About the Author

Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

Photo Credits

  • Goodshoot/Goodshoot/Getty Images