Professional Stock Calculator
Position Sizing, Long/Short Analysis, and Risk Management.
Position Sizer
Risk Management
Trade Analytics
Use the Position Sizer to find safe sizing, then calculate your potential profits.
Break Even Price
Price needed to cover fees.
Risk Analysis
Enter Stop Loss to see risk.
More Financial Tools
Treat Trading Like a Business, Not a Casino
New traders obsess over how much money they can make. Professional traders obsess over how much they can lose. The difference between gambling and successful trading lies in one concept: Risk Management.
Our Professional Stock Profit Calculator is built for the serious trader. It goes beyond simple ROI math. By integrating a Position Sizing Calculator, it helps you determine exactly how many shares you should buy based on your account size and risk tolerance. It supports both Long (bullish) and Short (bearish) analysis, giving you a complete toolkit for any market condition.
Professional Grade Features
Position Sizing
Calculate the perfect trade size to ensure you never risk more than 1-2% of your equity.
Long & Short Modes
Analyze profit potential whether you are betting on the price to rise (Long) or fall (Short).
Risk/Reward Analysis
Instantly see your R:R ratio. Filter out bad trades where the reward doesn't justify the risk.
Tax Estimator
Factor in Short-Term Capital Gains Tax to see what you actually keep.
Smart Targets
Automatic price targets for 10%, 20%, and 50% ROI goals.
Fee Inclusion
Calculate "real" break-even prices by including purchase and sale commissions.
The 1% Rule of Trading
The most popular rule among professional traders is the 1% Risk Rule. This rule states that you should never risk more than 1% of your total account balance on a single trade.
For example, if you have a $10,000 account, your maximum risk is $100. If your Stop Loss is hit, you should lose no more than $100.
Long vs. Short Selling
Going Long is the traditional "Buy Low, Sell High". Your potential loss is limited to the amount you invested (price goes to $0), but your profit potential is unlimited.
Short Selling is "Sell High, Buy Low". You borrow shares to sell them, hoping to buy them back cheaper. Warning: In short selling, your potential loss is theoretically unlimited (since price can rise infinitely), so strict Stop Losses are mandatory.
Frequently Asked Questions
How is profit calculated for Short Selling?
In a short sale, you sell borrowed shares first (Entry) and buy them back later (Exit) to return to the lender. Profit is made when the price drops. The formula is: (Entry Price - Exit Price) × Quantity - Fees. If the price rises, you lose money.
What is the 'Wash Sale' rule?
The IRS Wash Sale rule prevents you from claiming a tax deduction on a loss if you buy a 'substantially identical' security within 30 days before or after the sale. If you trigger a wash sale, your loss is disallowed for that tax year and added to the cost basis of the new position.
Why is Position Sizing important?
Position sizing is the #1 tool for survival. Even if you have a great strategy, betting too much on a single trade can wipe out your account during a losing streak. Using our Position Sizer ensures that a loss only dents your account by a small, manageable percentage (like 1%), keeping you in the game.
What is a good Risk/Reward Ratio?
Most professional traders look for a minimum 1:2 or 1:3 ratio. This means for every $1 you risk losing, you aim to make $2 or $3 in profit. With a 1:3 ratio, you can be wrong 50% of the time and still make significant money.
How are Capital Gains Taxes calculated?
In the US, gains on assets held for less than a year are Short-Term Capital Gains and taxed at your ordinary income tax rate (10-37%). Assets held longer than a year are Long-Term Capital Gains, taxed at lower rates (0%, 15%, or 20%). Our calculator lets you input an estimated rate (e.g., 25%) to see net profit.
Does this calculator include broker commissions?
Yes. You can enter 'Entry Fees' and 'Exit Fees'. While many modern brokers offer $0 commission on stocks, options and crypto often still have fees. Also, regulatory fees (SEC, FINRA) always apply to sell orders.
Can I use this for Options or Crypto?
Yes! The math is identical. For Crypto, simply enter the coin price and quantity (which can be decimal, e.g., 0.05 BTC). For Options, remember that 1 contract usually controls 100 shares, so enter the total cost or adjust quantity accordingly.
What is the Break-Even Price?
The break-even price is the price your asset needs to reach for you to exit the trade with exactly $0 profit/loss, covering all your transaction fees. For a Long trade, it is slightly higher than your buy price. For a Short trade, it is slightly lower.
What does 'ROI' stand for?
ROI stands for Return on Investment. It is the percentage growth of your capital in a specific trade. Formula: (Net Profit / Total Investment) × 100. A 20% ROI means you made $20 for every $100 invested.
Is Stop Loss guaranteed?
No. A 'Stop Order' becomes a 'Market Order' once the price is hit. In fast-moving markets or gaps (e.g., earnings overnight), your trade might execute at a price worse than your stop level. This is called 'Slippage'. Always account for potential slippage in your risk management.