Short Term vs Long Term Gains Calculator

Work out short term vs long term gains instantly with clear inputs, formula shown and shareable results.

About Short Term vs Long Term Gains Calculator

Most regimes tax gains on assets held beyond a threshold — commonly twelve months — at a lower rate. Comparing the tax now with the tax after qualifying shows exactly what waiting is worth, against the market risk of holding on.

Formula

Rate selection

Tax = gain × (long-term rate if months ≥ threshold, else short-term rate)

Worked example

With the default values below, Short Term vs Long Term Gains Calculator returns Tax Payable Now of $100,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Capital Gainminimum 0: 500,000
Months Heldaccepts 1–240: 9
Short-Term Rateaccepts 0–60 %: 20 %
Long-Term Rateaccepts 0–60 %: 12.5 %

Results

Tax Payable Now: $100,000.00
Gain Classification: Short-term gain
Tax Saved By Qualifying As Long-Term: $37,500.00
Months Until Long-Term Treatment: 3

Step by step

1Values used
2Rate selection
3Tax Payable Now= 100,000.00
4Gain Classification= Short-term gain
5Tax Saved By Qualifying As Long-Term= 37,500.00
6Months Until Long-Term Treatment= 3

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, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Tax figures are estimates based on the rates and threshold assumptions you enter. Holding-period rules and rates vary by jurisdiction and asset class. This is not tax advice.
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.

Tax figures are estimates based on the rates and threshold assumptions you enter. Holding-period rules and rates vary by jurisdiction and asset class. This is not tax advice.

Frequently Asked Questions

Is waiting always worth it?

Only if the market risk over the remaining months is smaller than the tax saved. A concentrated position may not justify it.

Does the holding period run from trade or settlement?

Usually from the acquisition date; some regimes use settlement. Check before cutting it fine.