Capital Gains Tax Calculator
Estimate tax on an investment gain.
Reviewed by the Calculation Machine team · How we check our maths
Your values
ⓘ Live results
Results
- Capital gain
- $14,500.00
- Estimated tax
- $2,175.00
- Net after tax
- $32,325.00
- Effective return
- 72.5%
- Treatment
- Long-term (preferential rate)
Working
- 1Tax = $14,500.00 × 15% = $2,175.00
Quick answer
Assets held over a year usually qualify for lower long-term capital gains rates than ordinary income rates.
The formula
Tax = (proceeds − basis) × rate
Worked example
Worked example
Using the values the calculator loads with.
Inputs
- Purchase price (cost basis)20000 $
- Sale proceeds34500 $
- Holding period1 year or more
- Your tax rate15 %
Result
- Capital gain$14,500.00
- Estimated tax$2,175.00
- Net after tax$32,325.00
- Effective return72.5%
- TreatmentLong-term (preferential rate)
How to use the Capital Gains Tax Calculator
- 1Enter your original cost basis.
- 2Enter the sale proceeds.
- 3Set your applicable capital gains rate.
Frequently asked questions
Why does one year matter?
In the US, gains on assets held over a year are taxed at 0/15/20% rather than your ordinary income rate, which can exceed 37%.
Can losses offset gains?
Yes. Realised losses offset gains, and in the US up to $3,000 of net loss can offset ordinary income each year.
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
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