TAXES CHANNEL

Capital Gains Tax Calculator

Calculate estimated capital gains liabilities on investment appreciation.

Calculator Variables

Asset Sale Price ($)

Original Cost Basis ($)

Holding Period

Other Annual Gross Income ($)

Calculation Overview

Calculate long-term or short-term capital gains tax liabilities on your stock, crypto, or property sales.

Mathematical Model & Formula

Tax = (Sale Price - Cost Basis) * Gains Bracket %

Multiplies total investment profits by federal capital gains rates, matching your holding period and income limits.

Variables Defined:

Worked Example Scenario

Scenario: Selling stock profit of $20,000 held for 2 years.

Cost basis was $30,000, sold for $50,000.
Profit is $20,000.
Long-term rate of 15% applies.

Result: Tax is $3,000.

Frequently Asked Questions

Why is short-term tax higher than long-term?

Short-term capital gains are taxed at ordinary progressive income tax rates, while long-term gains receive favorable lower rates to encourage long-term investing.