Finance Tools
Long Term vs Short Term Capital Gains Tax Calculator
Compare long-term and short-term capital gains tax to understand how holding period impacts your investment taxes and after-tax profit.
Long Term vs Short Term Capital Gains Tax Calculator
Compare short-term and long-term capital gains tax to estimate how different tax rates can change your after-tax profit. Enter your gain and your estimated rates to see the difference.
Results
Short-Term Tax: $6,000
Short-Term After-Tax Profit: $14,000
Long-Term Tax: $3,000
Long-Term After-Tax Profit: $17,000
Estimated Tax Savings (Long-Term vs Short-Term): $3,000
After-Tax Profit Difference: $3,000
Rates used: short-term 30.00%, long-term 15.00%. This tool provides an estimate for planning purposes—confirm your applicable rules and rates.
How to use
- Enter your total capital gain amount.
- Enter an estimated short-term capital gains tax rate.
- Enter an estimated long-term capital gains tax rate.
- Compare taxes and after-tax profit for each scenario.
FAQ
What’s the difference between short-term and long-term?
Many tax systems apply different rates depending on how long you held an asset. This calculator compares outcomes under two different tax rates.
Do I need my exact tax rate?
No—an estimate is fine for planning. You can adjust the rates to match your situation and compare scenarios.
Is this tool country-specific?
No. It uses the rates you enter. Rules and eligibility vary by country, so treat results as an estimate and confirm locally.
How to use this long term vs short term capital gains tax calculator
- Enter your total capital gain amount.
- Enter the short-term capital gains tax rate.
- Enter the long-term capital gains tax rate.
- Compare tax amounts based on holding period.
- Review potential tax savings from long-term holding.
Example
If capital gain is $20,000, short-term tax rate is 30%, and long-term tax rate is 15%, holding long term significantly reduces tax.
- Short-term tax = $20,000 × 0.30 = $6,000
- Long-term tax = $20,000 × 0.15 = $3,000
- Tax savings by holding long term = $3,000
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