When to use this calculator
Use this for a simple profit record where both transaction sides and fees are known.
Explore the investment return calculators for other questions in this topic. For a related calculation, use the Discount Factor Calculator: Find the multiplier that translates a future amount into present value.
PUTTING IT INTO PRACTICE
Capital Gains Return: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Purchase price | 1,000 |
| Sale proceeds | 1,300 |
| Total transaction costs | 50 |
| Result | 250 currency units |
- Check the input labels and enter the example values above.
- Apply the relationship: Net gain = sale proceeds − purchase price − costs.
- The result is 250 currency units, rounded for display.
How to interpret your result
This computes a monetary gain, not tax liability. Tax rules depend on country and circumstances.
Return measures must cover the same time period before comparison. CAGR annualises two endpoint values but does not model interim cash flows. Current income yield differs from total return or yield to maturity.
Frequently asked questions
Can CAGR handle money added during the period?
The simple endpoint CAGR model does not account for intermediate deposits and withdrawals. Those require cash-flow-aware methods.
When is the capital gains return calculator useful?
Use this for a simple profit record where both transaction sides and fees are known.
How do I use the capital gains return calculator?
Enter purchase price, sale proceeds, total transaction costs. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Net gain = sale proceeds − purchase price − costs.
What should I check before using the result?
This computes a monetary gain, not tax liability. Tax rules depend on country and circumstances.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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