What is a Cost Basis Calculator?
A cost basis calculator is a tool that helps investors determine the average cost of their investment holdings. By entering the total shares purchased and the total cost, users can quickly find their cost basis per share. This calculation aids in assessing capital gains or losses, allowing for more informed investment decisions and accurate tax reporting.
What is Cost Basis?
Cost basis is the original value of an asset, typically the purchase price, used to determine capital gains or losses when the asset is sold. It includes the purchase price plus any additional costs related to acquiring the asset, such as commissions and fees. Understanding your cost basis is essential for accurate tax reporting and investment analysis.
How to Use the Cost Basis Calculator?
To use the cost basis calculator, simply enter the total number of shares you have purchased in the designated field, followed by the total cost of those shares. Click the 'Calculate Cost Basis' button to compute the average cost per share. The result will display the cost basis along with detailed calculations and steps to help you understand how the figure was derived.
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