Configure Inputs

$10.00K
$
$100.00$1.00M
$15.00K
$
$100.00$2.00M
$75.00K
$
$0.00$1.00M

Total Capital Gain

$5.00K

Net Profit (After Tax)

$4.25K

Estimated Tax

After undefined Years

$750.00

Break-up of Maturity Value

Total Capital Gain
Net Profit (After Tax)

Effective Tax Rate

15.0%

Return on Investment

42.5%

Proceeds Breakdown

Principal
Interest
Fees & Charges
Legend Mapping: Principal = Cost Basis, Interest = Net Profit, Fees = Taxes

Deep Dive & FAQ

Holding Period Matters

The US tax code rewards long-term investors. The tax rate you pay on asset profits depends heavily on how long you owned the asset.

Short Term (< 1 Year)

Profits are taxed as Ordinary Income. This means they are added to your wages and taxed at your marginal tax bracket (which can be as high as 37%).

Long Term (> 1 Year)

Profits enjoy preferential tax rates: 0%, 15%, or 20%, depending on your taxable income. This is significantly lower than ordinary income rates for most investors.

Net Investment Income Tax (NIIT)

High earners (Modified Adjusted Gross Income over $200k for single, $250k for married) may owe an additional 3.8% surcharge on top of capital gains tax.