Calculate your net profit or loss on a stock trade after brokerage.
Gross P&L = (Sell price − Buy price) × Quantity. Net P&L = Gross P&L − total brokerage/charges.
Educational tool only — not investment advice. Markets involve risk; past performance and illustrative math don't guarantee future results.
The raw price difference between buying and selling a stock is only the starting point of real profit or loss — brokerage and transaction charges (which apply on both the buy and the sell side), and in some jurisdictions taxes like the Securities Transaction Tax, all eat into the actual number before it counts as real profit. A trade that looks like a clean gain based on entry and exit price alone can turn into a much smaller net gain, or even a net loss, once every cost layered onto both transactions is subtracted — a distinction that matters most for frequent, smaller trades where fixed or percentage-based charges represent a proportionally larger bite out of a modest price move.
Profit/loss also needs to be tracked as both an absolute number and a percentage return, because the same rupee or dollar gain means something very different depending on the capital deployed — a $500 gain on a $5,000 position is a 10% return, while the same $500 gain on a $50,000 position is only 1%. For anyone holding multiple positions or comparing trade performance over time, the percentage return (ideally net of all transaction costs) is the number that's actually comparable across trades of different sizes, while the absolute rupee/dollar figure alone can be misleading when position sizes vary.
No — that's only the starting point. Brokerage charges (on both the buy and sell side) and, in some markets, transaction taxes like the Securities Transaction Tax reduce the actual net profit or loss. A trade that looks profitable based on price alone can be a much smaller gain, or even a loss, after all costs are accounted for.
Because the same absolute gain means very different things depending on how much capital was deployed. A $500 gain on a $5,000 position is a 10% return; the same $500 gain on a $50,000 position is only 1%. Percentage return (net of costs) allows fair comparison across trades of different sizes, while absolute profit figures alone can be misleading.
Common deductions include brokerage or commission fees on both the buy and sell transactions, exchange or regulatory fees, and in applicable jurisdictions, transaction taxes. Even seemingly small percentage-based charges compound noticeably for frequent traders making many smaller trades.
Both are useful for different purposes — pre-tax P&L shows the raw trading performance, while post-tax P&L shows what's actually retained. Since capital gains tax treatment (and rates) vary significantly by holding period and jurisdiction, it's worth tracking both separately rather than only looking at the pre-tax figure.