Regardless of the post, you hold in the stock market, you need a stock calculator to help make things

easier for you.

Basically, a stock calculator helps you deduce the profit (or loss) you’re making when you buy or sell stock in addition to the break-even price and the Return on Investment – all this within seconds and with no manual calculation, provided you have all the relevant information.

Table of Contents

## What is stock?

In simple terms, the stock is the shares you own in a company. These shares make you a partial owner or a ‘shareholder’, of the relevant company.

For example, if a company has released 100 stocks and you buy 20 of these, you’d be owning 20% of the company’s capital. In other words, you will be the owner of 20% of the company’s assets and revenue, and because this is just a portion of the total, the term “partial owner” is used.

**This is where our stock calculator comes in…**

You now wish to buy stock in a company. This is where you’ll need our very handy-dandy stock calculator. This will help you make the right decision at the right time and yield maximum profits.

## What exactly is the right decision?

When you enter the market, you need to be careful every step of the way. This is especially for buying and selling stock.

Basically, you want to purchase stock when it’s as inexpensive as it can be, and then sell it when the rates go high – that is the right decision we’re trying to make.

Without a stock calculator (and in-depth thought), you may end up making purchasing when prices are high and selling when prices go low. Such transactions will incur a loss and hence need to be avoided.

## The formula involved in stock calculation

The stock calculator is based on the difference between revenues and expenses. In simpler terms, this means the prices at which you buy and sell your stocks.

## Calculating profit

Adding the required values into the following formula will give you the profit you’ve made:

## Calculating loss

For calculating loss, you will use the same formula as profit. If your answer is a positive value, you’ve yielded that amount of profit.

If your answer is a negative value, you’ve yielded that amount of loss. In the case of yielding neither positive nor negative, or in other words, getting the answer ‘zero’ means you’ve made neither a profit nor a loss.

## Calculating Return On Investment

The Return On Investment basically helps you understand the feasibility – or efficiency – of any investments you have made. It can be calculated using the formula given below:

## Calculating the Break-even point

In simple terms, the break-even price is the money you invest in buying the stocks or shares.

If you manage to earn an amount equal to the break-even cost, you will be making zero profit or loss. If your earning is lesser than this amount, you will be going into loss and finally, if your earning exceeds this cost, you will be making a profit.

Our break-even calculator will do this automatically for you, but if you want to calculate it manually, you can use the following formula:

where SCP stands for selling commission percentage. This will be calculated using:

## How to calculate stock price

Evidently, you can calculate the stock price and feasibility using our stock calculator, which will perform all calculations for you within seconds, providing accurate end-results.

If you have a minute or two to spare, you can calculate it manually using the series of formulae given above. The benefits of doing so include understanding what is happening at the back-end of the calculator and having a better insight on how stock price works in addition to the satisfaction of doing it by hand.

Whatever option you may opt for, you need to provide the required values. Before you get your hands on calculating, here is the data you should collect beforehand:

- The number of shares or stocks you own
- The buying price of your stocks
- The selling price of your stocks
- The selling commission
- The buying commission
- The selling commission percentage found using the given formula

## Why use the stock calculator?

The stock calculator will help you make feasible investments that will bring about profitable results. It helps decipher when buying will be easy on the pocket, and when the selling will help earn money beyond the break-even point.

At times, resorting to loss is the only option. This is when you fear the rates of the stocks you need to sell are only decreasing in the future. In such a scenario, you should prioritize little loss over the larger loss by selling the stocks there and then.

## Conclusion

If you’re a part of the stock market, the stock calculator should be your best friend. You can use it to calculate very important parameters such as profit and loss in addition to the return on investment and break-even point. These parameters will in turn help you make efficient investments.