Work out short selling profit instantly with clear inputs, formula shown and shareable results.
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.
Short profit
Profit = (short price - cover price) × quantity - borrow fee on notional
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.
A share can rise indefinitely, so the cost of buying it back has no ceiling — the opposite of a long position.
Rising prices force shorts to cover, and that buying pushes prices higher still, feeding the move.