Comprehensive Guide
Learn more in our Business & Tax Guide.
How it works
capital gains tax calculator — advanced takes your inputs and produces capital gain, short-term tax (ordinary rate), long-term tax (preferential rate), savings from long-term treatment. Calculate capital gains tax on stocks, real estate, and other investments — short-term vs long-term rates. You provide 6 inputs: Purchase price (currency, in dollars) (default: 50000 dollars); Sale price (currency, in dollars) (default: 75000 dollars); Holding period (months) (number) (default: 18); Ordinary income tax rate (%) (percent, in percent) (default: 22 percent); Long-term capital gains rate (%) (percent, in percent) (default: 15 percent); Net Investment Income Tax (%) (percent, in percent) (default: 0 percent). The calculator returns 4 outputs: Capital gain (the primary result); Short-term tax (ordinary rate) (a secondary output); Long-term tax (preferential rate) (a secondary output); Savings from long-term treatment (a secondary output). Business tax and finance calculations combine multiple moving parts — revenue, expenses, depreciation, tax brackets, and timing — in ways that make back-of-envelope estimates unreliable. This calculator handles the interaction of those variables precisely, so your business decisions rest on real arithmetic. The underlying formula: Short-term tax = Gain × Ordinary rate. Long-term tax = Gain × LTCG rate + NIIT. With the default values, capital gain is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Formula
Short-term tax = Gain × Ordinary rate. Long-term tax = Gain × LTCG rate + NIIT.
Tips
- Hold investments for 1+ year to qualify for lower long-term rates.
- 0% LTCG rate for income under $47,025 single / $94,050 married.
- 15% LTCG rate for income up to $518,900 single / $583,750 married.
- NIIT (3.8%) applies to investment income when MAGI exceeds $200K/$250K.
Frequently asked questions
What is the capital gains tax rate?
Short-term (under 1 year): 10–37% (ordinary income rates). Long-term (1+ year): 0%, 15%, or 20% depending on income. Plus 3.8% NIIT if income exceeds $200K/$250K.
How do I minimize capital gains tax?
Hold for 1+ year (long-term rates). Harvest losses to offset gains. Use tax-advantaged accounts. Gift appreciated stock to charity. Time sales for low-income years.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.