Your broker app flashes green. The price is up. It feels like the trade worked. Then you close the position and the money that lands in your account is smaller than the profit you had in your head.
That gap is usually not mysterious. It is the difference between a price move and a net result. Buy fees, sell fees, position size and cost basis all sit between those two numbers.
The number that matters is net profit or loss
A stock can rise and still leave you with a disappointing result. Gross profit only compares the purchase and sale values. Net profit removes the costs required to enter and exit the position.
If your broker charges a percentage on both sides, total fees are calculated from both transaction values. Our Profit and Loss Calculator does exactly that and updates the answer while you type.
A quick example: the $600 position
Imagine buying 50 shares at $12. Your position costs $600. Later, you sell at $15, producing $750 in gross proceeds. The visible price move suggests a $150 profit.
Your net return is about 24.44%, not the 25% price change. The gap is small here, but frequent trading, larger fee rates and currency conversion can make it much wider.
Why your broker’s percentage may look different
Two screens can describe the same trade with different percentages because they are answering different questions:
- Price change compares only the entry and current prices.
- Unrealised return values an open position and may not include the eventual sell fee.
- Realised return uses the executed exit price and completed costs.
- Account return may include cash, currency movement, dividends and other positions.
Decide which question you need before comparing figures. For a single completed trade, net P/L divided by original position cost is usually the clearest answer.
A profitable trade is not automatically a good trade
Profit tells you what happened. It does not tell you whether the risk made sense. Making $100 after risking $1,000 is a very different decision from making $100 after risking $120.
Before entering, use the Position Size Calculator to connect the stop distance to a fixed account risk. If fees are the missing piece, the Break Even Price Calculator shows how far price must move before the position is genuinely flat. For comparing investments with different total costs, use the ROI Calculator.
The 30-second trade check
- Use the actual average purchase price, not the first fill.
- Include the full quantity sold.
- Add the fee rate charged on both entry and exit.
- Separate unrealised estimates from completed trades.
- Compare net return with the risk taken, not just the colour.
Quick answers
Frequently asked questions
How do I calculate profit on a stock trade?
Subtract the total purchase cost and all trading fees from the sale proceeds. Net P/L = sale value − purchase value − buy and sell fees.
Should stock return include fees?
Yes. Fees reduce the amount you actually keep, so net return should use profit after both buy-side and sell-side costs.
Why is my broker’s return different from mine?
The broker may use a different cost basis, exclude estimated sell fees, include currency conversion, or show an unrealised rather than realised return.
Educational content only. This guide is not financial advice.