Capital Gains Tax Calculator
The Capital Gains Tax Calculator computes the tax owed on an investment gain at your chosen rate and shows the net proceeds you keep after selling.
What this means
When you sell an investment for more than you paid, the profit is a capital gain. Depending on how long you held it and your income, part of that gain goes to tax — this calculator shows the split.
How we calculate it
Formula
Tax = gain × tax rate; net = gain − tax.Worked example
A $5,000 gain taxed at 15%:
- 1Tax = 5,000 × 15% = $750
- 2Net proceeds = $5,000 − $750 = $4,250
Important assumptions
- The rate is your effective capital gains rate for this asset.
- State and local taxes are not included unless added to the rate.
Frequently asked questions
Do I pay taxes on unrealized gains?
No — tax is triggered only when you sell. Holding investments avoids the tax until a sale, which is why many strategies favor long-term holding.
How can I reduce capital gains tax?
Hold assets longer to qualify for lower long-term rates, use tax-advantaged accounts, and offset gains with losses. A tax professional can tailor this to you.