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Short Selling Profit Calculator

Work out short selling profit instantly with clear inputs, formula shown and shareable results.

About Short Selling Profit Calculator

Short selling profits when the price falls, but the borrow fee is paid throughout and the potential loss is unlimited because the price can rise without bound. The return on margin shows how leverage magnifies both outcomes.

Formula

Short profit

Profit = (short price - cover price) × quantity - borrow fee on notional

Worked example

With the default values below, Short Selling Profit Calculator returns Net Profit of $43,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Price When Shortedminimum 0
800
Price When Coveredminimum 0
690
Quantityaccepts 1–10,000,000
500
Stock Borrow Feeaccepts 0–50 %
3 %

Results

Net Profit
$43,000.00
Gross Profit On The Price Fall
$55,000.00
Stock Borrow Cost
$12,000.00
Return On A 50% Margin Deposit
21.500%

Step by step

  1. 1Values used
  2. 2Short profit
  3. 3Net Profit= 43,000.00
  4. 4Gross Profit On The Price Fall= 55,000.00
  5. 5Stock Borrow Cost= 12,000.00
  6. 6Return On A 50% Margin Deposit= 21.500

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Why is the loss unlimited?

A share can rise indefinitely, so the cost of buying it back has no ceiling — the opposite of a long position.

What is a short squeeze?

Rising prices force shorts to cover, and that buying pushes prices higher still, feeding the move.

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Short Selling Profit Calculator – Calculate Net Profit