1. What is Capital Gain/Loss?

Capital Gain/Loss is the difference between the selling price and the purchase price of an asset. A positive result indicates a gain, while a negative result indicates a loss.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Sum Gains — Total value of all profitable transactions
• Sum Losses — Total value of all loss-making transactions

Explanation: The calculation helps investors understand their overall performance across multiple investments.

3. Importance of Calculating Capital Gain/Loss

Details: Accurate capital gain/loss calculation is crucial for tax reporting, investment strategy evaluation, and portfolio performance assessment.

4. Using the Calculator

Tips: Enter all gains and losses in USD. The calculator will automatically compute the net result and display all values for reference.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a capital gain?
A: Any profit made from selling an asset (stocks, real estate, etc.) for more than its purchase price.

Q2: What's considered a capital loss?
A: Any loss incurred from selling an asset for less than its purchase price.

Q3: How are short-term vs long-term gains different?
A: Short-term (assets held ≤1 year) are typically taxed at higher rates than long-term gains.

Q4: Can losses offset gains for tax purposes?
A: Yes, in most jurisdictions, capital losses can offset capital gains to reduce taxable income.

Q5: Should I include dividends in this calculation?
A: No, dividends are typically considered income, not capital gains. This calculator focuses on asset price appreciation/depreciation.