Stock Return Calculator

Capital gain = sell price − cost basis (purchase price + commissions). If held over 1 year, the gain is long-term and taxed at 0/15/20% based on income. If held 1 year or less, the gain is short-term and taxed at ordinary income rates (10–37%). Brokers report cost basis on Form 1099-B.

For taxable income up to $49,450 (single) or $98,900 (MFJ) in the current year, long-term capital gains are taxed at 0%. This is the lowest LTCG bracket — strategically realizing gains while in this bracket (e.g., a sabbatical year, early retirement before SS) is a known optimization called "harvesting gains."

Tax considerations matter, but holding for over 1 year qualifies for lower LTCG rates. Don't sell purely on tax grounds — over the long term, fundamental performance dwarfs tax friction. Vanguard research shows tax drag on a low-turnover index fund is roughly 0.5–1% per year, while emotional trading can cost 3–5%.

IRS Publication 550: if you sell a security at a loss and buy the same or substantially identical security within 30 days before or after, the loss is disallowed and added to the cost basis of the new shares. Avoid this by waiting 31+ days, or by buying a similar but not identical security (e.g., S&P 500 ETF for total market ETF).

Yes. Qualified dividends (US large-cap stocks held over 60 days, most index funds) are taxed at LTCG rates. Non-qualified dividends (REITs, money markets, foreign) are taxed at ordinary income rates. Brokers report both on Form 1099-DIV.

Adds 3.8% to investment income (capital gains, dividends, interest) for taxpayers with MAGI over $200,000 (single) or $250,000 (MFJ). At the highest LTCG bracket, the effective rate becomes 23.8% federal. Most middle-class investors don't pay NIIT.

Roughly 10% nominal annualized over the long term (1928–2024), or about 7% real after inflation. Year-to-year volatility is large — the S&P has dropped 50%+ in three of the past 25 years (2000–02, 2008, 2020 briefly). Use historical averages for planning, not for predicting next year.

Yes — Roth IRA and Roth 401(k) growth and qualified withdrawals are tax-free at federal level. Health Savings Accounts (HSAs) used for qualified medical expenses are tax-free in and out. Section 529 college savings plans are state and federal tax-free for education. Direct brokerage accounts are always taxable.