Capital Gains Tax Calculator

How This Number Is Built

Gain = Sale Price − Purchase Price − Selling Costs. If the result is negative, it's a loss rather than a gain, and no tax applies to it directly. If it's positive, the gain is classified as Short-Term (held one year or less) or Long-Term (held more than one year) and multiplied by whichever of your two entered tax rates matches that classification. Net proceeds is simply the sale price minus your selling costs and the tax owed.

Worked Example

You bought an asset for $10,000 and sold it for $15,000 after paying $200 in brokerage or closing fees. You held it for 18 months, so it qualifies as long-term, and your long-term rate is 15%.

• Gain = $15,000 − $10,000 − $200 = $4,800
• Classification = Long-Term (held more than 1 year)
• Tax Owed = $4,800 × 15% = $720
• Net Proceeds = $15,000 − $200 − $720 = $14,080

Had the same $4,800 gain instead been short-term at a 24% rate, the tax owed would jump to $1,152 — over $400 more — which is exactly why the holding-period threshold matters so much for anyone deciding when to sell.

Why You Enter Your Own Rates

This calculator deliberately does not hardcode any country's tax brackets. Capital gains rates depend on your country of residence, your total taxable income for the year, the type of asset sold (collectibles and certain real estate often have their own rules), and whether you qualify for any exemptions. Rather than presenting a false sense of precision by picking one country's bracket table, this tool asks you to supply the rate that actually applies to you, which you can get from a tax professional, your tax authority's official rate schedule, or your own prior tax return.

Frequently Asked Questions

Q: Does the 1-year threshold apply everywhere?
A: No. It's the convention used in the United States. Other countries use different holding periods, flat rates regardless of holding period, or exempt certain asset classes entirely. Confirm the rule for your own country before relying on the classification shown here.

Q: Can I deduct buying costs, like a brokerage commission when I purchased the asset?
A: In most systems, yes — costs to acquire an asset typically increase your cost basis (i.e. reduce your gain), while costs to sell it reduce your proceeds. This calculator only has a single "Selling Costs" field; if you paid a purchase-side fee too, add it into the Purchase Price field instead so it's reflected in the gain calculation.

Q: What if I have both gains and losses from different sales this year?
A: Many tax systems allow you to net gains and losses against each other before applying a tax rate, which can meaningfully reduce what you owe. This calculator evaluates one sale in isolation and does not model netting across multiple transactions.