How the Share Profit Calculator Works (With a Worked Example)
Calculates profit or loss on a share trade after brokerage. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Share Profit Calculator.
Why it matters
Australians save and invest through bank accounts, term deposits, shares, ETFs and property. Interest and dividends are taxable, franking credits can offset tax on dividends, and inflation steadily reduces the value of money that isn’t growing.
What you need to enter
The calculator asks for 4 inputs. The table shows each one with the example value used later in this guide.
| Input | Example value |
|---|---|
| Buy price per share ($) | 10 |
| Sell price per share ($) | 12.5 |
| Number of shares | 1000 |
| Brokerage per trade ($) | 10 |
The formula
Profit = sell value − buy value − brokerage on both trades.
Worked example
Entering the example values above gives these results:
| Result | Value |
|---|---|
| Net profit | $2,480.00 |
| Total cost | $10,010.00 |
| Return | 24.78% |
The headline figure is $2,480.00 (net profit). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.
How the net profit changes with buy price per share
The table below keeps every other input at the example value and moves only “Buy price per share ($)” up and down by 10% and 20%. It shows how sensitive the net profit is to that one figure.
| Buy price per share ($) | Net profit |
|---|---|
| 8 | $4,480.00 |
| 9 | $3,480.00 |
| 10 | $2,480.00 |
| 11 | $1,480.00 |
| 12 | $480.00 |
At 8 the result is $4,480.00; at 12 it is $480.00. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.
A practical tip
Profit on shares is a capital gain. Holding for more than 12 months can halve the taxable amount.
Keep going
Before relying on the number, read Getting the Most From a Share Profit Calculator: Tips and Common Errors. You might also find these guides useful:
- ROI Calculator: Formula, Example and What the Result Means
- Using a CAGR Calculator in Australia: A Step-by-Step Guide
- Emergency Fund Calculator Explained for Australians
Frequently asked questions
- Are investment returns guaranteed?
- Only some products, such as term deposits, have fixed rates. Share and fund returns vary and can be negative.
- Is my bank deposit protected?
- The Financial Claims Scheme guarantees deposits up to $250,000 per account holder per authorised bank.
- Is this investment advice?
- No. The calculators provide general information only.
Run your own numbers in the Share Profit Calculator.
Open the calculatorGeneral information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.