What is a capital gain?

A capital gain is the profit you make when you sell an asset for more than you paid for it. The IRS taxes this profit.

How do long-term and short-term capital gains differ?

Short-term gains (held one year or less) are taxed as regular income. Long-term gains (held more than one year) are taxed at lower rates.

Does this calculator include state taxes?

No, this calculator estimates only the U.S. federal capital gains tax. State taxes may also apply, depending on where you live.

Can I use this calculator for multiple sales?

This tool is designed for single sales. For multiple transactions, calculate each one separately.

What does the “Net Proceeds” result mean?

Net proceeds show how much money you’ll keep after the federal capital gains tax is deducted from your gain.

How do I save or share my results?

You can copy your results or export them as a PDF or Excel file directly from the calculator for easy sharing or recordkeeping.

Capital Gains Tax Calculator

Calculate your capital gains tax with clarity.

Inputs

Sale and holding period

Cost basis ($)

Sale price ($)

Holding period

Filing status

Other taxable income ($)

Results

Gain, tax, net proceeds

Gain

$5,000

Tax

$750

Net proceeds

$14,250

Rate: 15%

Breakdown

Gain, tax, and net proceeds (single sale, U.S. federal)

For educational and estimation purposes only; not tax or legal advice. U.S. federal capital gains only (no state/local). Short-term taxed as ordinary income (simplified rate); long-term 0%/15%/20% by income (2024 thresholds). Rules and rates change—consult a tax professional for your situation.

How It Works

Here’s a step-by-step guide to using this calculator:

1. Enter Your Sale and Holding Period Details

Original Purchase Price ($):Type the amount you originally paid for the asset (for example, $10,000).
Sale Price ($):Enter the amount you sold the asset for (for example, $15,000).
Holding Period:Select whether you held the asset for more than one year. This calculator uses the “Long-term (over 1 year)” option, which qualifies for long-term capital gains tax rates.

2. Enter Your Tax Filing Details

Filing Status:Choose your filing status (e.g., Single).
Taxable Income ($):Enter your annual taxable income (for example, $50,000). This helps determine your applicable long-term capital gains tax rate.

3. Calculate

Click “Calculate” to see your results. If you want to start over, simply use the “Reset” button.

4. Review Your Results

The calculator displays three key numbers:

Gain:The amount you made from the sale after subtracting your original purchase price.
Tax:Your estimated federal capital gains tax is based on the gain and your income.
Net Proceeds:The amount you’ll keep after paying capital gains tax.

The calculator also shows the tax rate used for your calculation.

5. Explore Additional Features

Copy:Instantly copy your results to your clipboard.
Export PDF / Export Excel:Download your results in PDF or Excel format for your records or to share with your tax advisor.
Breakdown:View a simple breakdown of your gain, tax, and net proceeds for a single sale under U.S. federal tax rules.

This straightforward approach helps you plan your investment sales and understand their tax impact with confidence.

Understanding Capital Gains Tax

Capital gains tax is the federal tax you pay when you sell an asset, such as stocks, real estate, or other investments, for more than you paid for it. The difference between your purchase price (“cost basis”) and the sale price is your capital gain.

This tax primarily affects people who are selling investments that have grown in value, and the rate you pay depends on how long you held the asset and your income level.

There are two main types of capital gains:

Short-term gains (assets held for one year or less), which are taxed at your ordinary income tax rate.
Long-term gains (assets held for more than one year), which usually qualify for lower tax rates.

This calculator focuses on long-term capital gains for individual taxpayers, helping you quickly estimate what you might owe the IRS and what you’ll keep after the sale.

How This Calculator Helps

This Capital Gains Tax Calculator is designed to make it easy to estimate your federal tax liability when you sell an investment. By entering the asset’s original purchase price, the sale price, your holding period (to confirm it qualifies for long-term rates), and your individual filing status and income, you’ll receive immediate answers to key questions:

How much did I gain from the sale?
How much tax will I owe on that gain?
What will I actually keep after taxes are paid?

Everything is clearly broken down, so you can make informed decisions about selling your investments.