What is the difference between short-term and long-term gains?

Short-term gains (held under 1 year) are taxed as ordinary income. Long-term gains (held over 1 year) get preferential rates of 0%, 15%, or 20%.

Can capital losses offset gains?

Yes. Capital losses offset capital gains dollar-for-dollar. If losses exceed gains, you can deduct up to $3,000 against ordinary income per year.

Do I owe tax on unrealized gains?

No. Capital gains tax is only owed when you sell an asset. Unrealized gains (paper profits) are not taxed until the sale occurs.

Free Capital Gains Tax Calculator

Calculate capital gains tax on investment profits for both short-term and long-term holdings.

Save

Purchase Price

USD

Sale Price

USD

Holding Period

Capital Gain

$5,000

Tax on Gain$750

After-Tax Profit$4,250

Total Return50.0 %

Capital Gain vs Purchase Price

View formula & how it works →

Capital Gains Tax Rates (2024)

Long-Term (held >1 year)

Income LevelRate Up to ~$47,025 (single)0% $47,026-$518,90015% Over $518,90020%

Short-Term (<1 year)

Taxed as ordinary income at your marginal tax rate (up to 37%).

Example Calculation

Bought at $10,000, sold at $15,000, held over 1 year.

01Capital gain = $15,000 - $10,000 = $5,000
02Tax at 15% = $5,000 x 0.15 = $750
03Net profit = $5,000 - $750 = $4,250

Frequently Asked Questions

Learn More

How to Calculate Mortgage Payments

Learn how to calculate mortgage payments step by step. Understand the mortgage payment formula, principal vs. interest breakdown, escrow, PMI, and how to use amortization schedules.

Free Capital Gains Tax Calculator

Capital Gains Tax Rates (2024)

Long-Term (held >1 year)

Short-Term (<1 year)

Example Calculation

Frequently Asked Questions

How to Calculate Mortgage Payments

Related Calculators

Tax Loss Harvesting

Federal Tax

ROI Calculator