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Cost Basis Calculator

Cost Basis Calculator

Evaluate stock basis, number of shares, stock profit, and percentage profit or loss along with the total number of shares with the cost basis calculator.

$

Current Stock Price

Number of Shares Bought and Their Prices

Number of Shares 1 Buy

$

Shares Purchase Price 1 Buy

Number of Shares 2 Buy

$

Shares Purchase Price 2 Buy

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The cost basis calculator assists in calculating the stock cost basis, stock profit, profit percentage, and the total number of shares. Stock brokers can generate alternative stock sharing while using the average stock price calculator.

What Is the Stock Cost Basis?

The cost basis is the original value of an asset for tax purposes. The cost basis does include purchase price, stock splits, dividends, and return of capital distributions.

Being a stock investor, the stock cost basis calculator assists in deciding the following parameters.

  • Purchase Price 
  • Acquisition Costs
  • Capital Improvements 
  • Depreciation
  • Fees and Expenses

Formula For Stock Cost Basis:

The stock average cost basis calculator utilizes the formula below for calculating the stock basis

Cost basis = (P1 × Q1 + P2 × Q2 + … + Pi × Qi ) / N

where:

N = Q1 + Q2 + … + Qi (Total number of shares bought)

P1 =  Number of 1st shares purchased

Q1  = Shared price of 1st shares 

P2 =  Number of 2nd shares purchased

Q2 = Shared price of 2nd shares 

Qi =   Number of last shares purchased

Pi =  Shared price of the last share 

A cost average calculator determines the cost basis of an investment or asset, typically for tax or financial reporting purposes.

How To Calculate Stock Profit or Loss?

Let’s suppose XYZ Company purchased 100 shares and today each stock price is $ 10,000. The company purchased the first 50 shares at the cost of $50,00 each cost and the second purchase of stock of 50 shares at the cost of $ 10,000. Then what is the stock cost basis, stock profit, profit percentage, and total shares?

Solution:

Step 1: Calculate the Stock Cost Basis

Total Cost Basis = Cost of First 50 Shares + Cost of Second 50 Shares

Total Cost Basis = $250,000 + $500,000

Total Cost Basis = $750,000

So, the stock cost basis for XYZ Company is $750,000.

Step 2: Calculate the Stock Profit

Enter the amount of $10,000 for each share’s current stock price.

Stock Profit = (Current Value of Shares – Total Cost Basis)

Stock Profit = (100 shares * $10,000 per share) – $750,000

Stock Profit = $1,000,000 – $750,000

Stock Profit = $250,000

Now the stock profit for XYZ Company is $250,000.

Step 3: Calculate the Profit Percentage

For calculating the Profit Percentage:

Profit Percentage = (Stock Profit / Total Cost Basis) * 100

Profit Percentage = ($250,000 / $750,000) * 100

Profit Percentage = 33.33%

Now the profit percentage is 33.33%(approx).

Step 4: Compile All the Results

  • Stock Cost Basis: $750,000
  • Stock Profit: $250,000
  • Profit Percentage: Approximately 33.33%
  • Total Shares: 100

Citation

From Investopedia.com: Stock Cost Basis