Stock Cost Basis Calculator
Calculate the exact cost basis of your stock purchases, factoring in price per share and trading commissions.
Understanding Cost Basis
Cost basis is the original value of an asset for tax purposes. For stocks, it is the purchase price of the shares plus any commissions, fees, or other costs associated with the purchase.
Why Cost Basis is Crucial
When you sell a stock, the IRS calculates your capital gains tax based on your profit. Profit is defined as your sale proceeds minus your cost basis. By accurately including trading fees in your cost basis, you reduce your taxable profit, saving you money.
Worked Example
- Shares Purchased: 200
- Price Per Share: $45.00
- Total Trade Value: $9,000
- Commission Paid: $15
- Total Cost Basis = $9,015.
- Adjusted Cost Basis Per Share = $45.075.
Frequently Asked Questions
What if I buy the same stock at different times?
If you buy shares of the same stock at different times and prices, you can use the Average Cost method, or use FIFO (First In, First Out) or Specific Identification to determine the cost basis of the exact shares you sell.
Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.