ES
Home › Calculators › Short Sale Profit Calculator

Short Sale Profit Calculator

See what a short position really made or lost. Enter the price you sold at, the price you bought back at, the number of shares and how long you held, then add the borrow fee, commissions and any dividends you owe to get the net profit, return on margin and break-even cover price.

Last updated:

Trade
$
$
days
Costs
%

Easy-to-borrow stocks are often under 1%; hard-to-borrow stocks can cost far more.

$
$
$

Short sellers pay the lender any dividend with an ex-date while the position is open.

%

Reg T: 50% of the short sale value (150% total including the proceeds).

Enter your values to see the result.
Advertisement
Advertisement

How to use the Short Sale Profit Calculator

  1. Enter the trade: shares sold short, the short sale price, the cover price and the number of days the position was open.
  2. Add the costs: the annual borrow fee your broker charged, commissions and any dividends you had to pay.
  3. Set the initial margin you deposited (50% under Reg T) to see the return on your own money.
  4. Click Calculate profit to see the net P&L, break-even cover price and returns.
  5. Check the scenario table to see the result at other cover prices, and download it as CSV.

Short sale profit formula

Net P&L = (entry price − cover price) × shares − borrow fee − commissions − dividends owed

Borrow fee = shares × entry price × annual rate × days ÷ 360 (some brokers use 365). The break-even cover price is entry price − total costs ÷ shares.

Example: short 200 shares at $85.00, cover at $68.50 after 45 days with a 3% borrow rate. Gross profit is $3,300. The borrow fee is $17,000 × 3% × 45 ÷ 360 = $63.75, so the net profit is $3,236.25. With a 50% initial margin deposit of $8,500, that is a 38.1% return on margin.

Long vs short: how the risk differs

Buying a stock (long)Short selling
Profits whenThe price risesThe price falls
Maximum profitUnlimitedShort sale value (stock falls to $0), minus costs
Maximum lossThe amount investedUnlimited
Ongoing costsMargin interest if borrowedBorrow fee every day, plus dividends owed
DividendsYou receive themYou pay them to the lender
Other risksMargin calls if leveragedMargin calls, recalls/buy-ins, short squeezes

Borrow fee rates in practice

  • General collateral (easy to borrow): large, liquid stocks usually cost well under 1% a year.
  • Hard to borrow: heavily shorted or small-float stocks can cost tens of percent a year, and rates can change daily.
  • A high borrow fee quietly eats the profit of a slow-moving short: at 60% a year, a 90-day short costs about 15% of the position value.
  • Check your broker’s current rate before opening a short, and again while it is open.

Frequently asked questions

How is profit on a short sale calculated?

Profit = (short sale price − cover price) × shares − borrow fees − commissions − dividends owed. If you short 200 shares at $85 and cover at $68.50, the gross profit is 200 × $16.50 = $3,300 before costs.

How is the stock borrow fee calculated?

Brokers accrue it daily: market value of the borrowed shares × annual fee rate ÷ 360 (or 365) for each day the short is open. This calculator uses the value at the short sale price; because brokers mark the position to market every day, the actual fee changes with the share price.

What is the break-even price for a short?

It is the price at which buying back the shares leaves you with zero profit after costs: entry price − (borrow fee + commissions + dividends) ÷ shares. You need to cover below this price to make money.

Do short sellers have to pay dividends?

Yes. If you are short a stock on its ex-dividend date, you owe the lender an amount equal to the dividend, which your broker debits from your account.

How much margin do I need to short a stock?

Under Regulation T the initial requirement is 150% of the short sale value: the 100% proceeds stay in the account and you deposit another 50%. Brokers then require ongoing maintenance margin, often 30% or more for shorts, and higher for volatile or low-priced stocks.

What is the maximum loss on a short sale?

In theory it is unlimited, because there is no upper limit to how high a stock price can rise. The maximum profit is limited to the short sale value if the stock falls to zero, minus costs.

Is the return on margin annualized?

No, the main return is for the holding period. For positions held less than a year the calculator also shows an annualized figure, which assumes the same result could be repeated all year.

Are all the tools on FreeToolCabin tested for quality and accuracy?

Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.

Related tools

Margin Call CalculatorPrice at which a margin call triggers for long or short stock, plus cash needed to meet one.Margin Interest CalculatorInterest on a margin loan by balance, rate and days, plus the return needed to break even.Stock Profit CalculatorStock trade profit and % return after commissions, plus the break-even sell price.Options Profit CalculatorProfit or loss at expiry for calls and puts, break-even, max profit/loss and a payoff chart.Profit Margin CalculatorGross margin, markup, cost or price: solve for any one, single or bulk.Receipt MakerFill in a receipt template with items and tax, then print or save PDF.Car Depreciation CalculatorEstimate your car's value over time and its projected resale price.CTR CalculatorCalculate click-through rate and compare it with industry benchmarks.Conversion Rate CalculatorCalculate e-commerce conversion rate, revenue per visitor and goals.CPM CalculatorSolve CPM, cost, impressions, CTR and CPC for ad campaigns.Quote Estimate GeneratorCreate a quote or estimate with line items and tax, then save as PDF.ROAS Calculator (Return on Ad Spend)Calculate ROAS, break-even ROAS and profit for each ad channel.Customer Lifetime Value CalculatorCalculate customer lifetime value, LTV:CAC ratio and CAC payback from ARPU and churn.Churn Rate CalculatorCalculate customer churn and retention rates and convert monthly churn to annual.YouTube Money CalculatorEstimate YouTube earnings per day, month and year from views and RPM by niche.Instagram Engagement Rate CalculatorCalculate Instagram engagement rate by followers or reach and compare it to benchmarks.Ecommerce Profit CalculatorNet profit, margin, markup and break-even ROAS per order after fees, ads and returns.Amazon FBA CalculatorEstimate Amazon FBA fees, profit per unit, margin, ROI and break-even price.Etsy Fee CalculatorEtsy listing, transaction, processing and Offsite Ads fees, payout and net profit.eBay Fee CalculatoreBay final value fee, per-order fee, ad fees, payout and net profit on any sale.Dollar Cost Averaging CalculatorSee units bought, average cost, value and profit for regular buys at your own price list.Startup Runway CalculatorProject cash, burn rate and runway month by month, with growth, break-even and zero-cash date.Break Even CalculatorFind break-even units and revenue, contribution margin, margin of safety and a cost-volume chart.SaaS Pricing CalculatorModel flat, per-seat, tiered and volume plans with annual discounts to get MRR, ARR and ARPU.Employee Cost CalculatorWork out the true cost of an employee: payroll taxes, benefits, overhead and real hourly cost.Inventory Turnover CalculatorInventory turnover ratio and days inventory outstanding from COGS or sales and average stock.Markup CalculatorFind the selling price from cost and markup, or the markup and margin from cost and price.Unit Price CalculatorCompare up to 4 products by price per ounce, pound, liter or item and find the best deal.Cap Rate CalculatorCalculate a rental property's NOI, cap rate and optional cash-on-cash return.Depreciation CalculatorStraight-line, declining balance, double declining and sum-of-years depreciation schedules.Crypto Profit CalculatorCalculate crypto trade profit, ROI and break-even price after buy and sell fees.PayPal Fee CalculatorWork out PayPal fees, what you receive, and how much to ask for to get an exact amount.Stripe Fee CalculatorCalculate Stripe fees and payouts, or how much to charge to receive an exact amount.Net Promoter Score CalculatorCalculate NPS from promoter, passive and detractor counts or pasted 0–10 survey scores.CPC CalculatorCalculate cost per click from ad spend and clicks, plus CPM, CTR, CPA and ROAS.P/E Ratio CalculatorPrice-to-earnings ratio, earnings yield and PEG ratio from share price, EPS and growth.WACC CalculatorWeighted average cost of capital from equity, debt, their costs and the tax rate.Payback Period CalculatorPayback and discounted payback period for an investment with even or uneven cash flows.Early Payment Discount CalculatorSee the discount, amount due early and annual cost of skipping terms like 2/10 net 30.EBITDA CalculatorEBITDA, EBIT and EBITDA margin from net income or from revenue and operating expenses.Employee Turnover Rate CalculatorTurnover rate from headcount and separations, with annualized rate and retention.Startup Equity Dilution CalculatorCap table before and after a funding round with option pool top-up and dilution per holder.Fiverr Fee CalculatorFiverr seller earnings, buyer total with fees, and the gig price for a target.Gross Rent Multiplier CalculatorFind the GRM of a rental, estimate value from GRM and rent, or the rent a target GRM needs.Influencer Rate CalculatorEstimated price range per post, story or video from followers and engagement.Invoice Due Date CalculatorFind the due date for Net 30, Net 60, EOM or custom terms and the days left or overdue.Book Royalty CalculatorRoyalty per sale and monthly earnings for eBooks and paperbacks after printing costs.Landed Cost CalculatorTotal landed cost and cost per unit of imported goods, with duty, freight, fees and pricing.Late Payment Interest CalculatorCalculate days late, late interest and total due on an overdue invoice.LTV to CAC Ratio CalculatorLTV, CAC, the LTV:CAC ratio, payback months and a health rating for your unit economics.Marketing Budget CalculatorMarketing budget from % of revenue or customer goals, split by channel per year and month.Mercari Fee CalculatorMercari selling and processing fees, earnings and profit, with editable rates.MRR CalculatorMonthly recurring revenue, ARR, net new MRR, growth rate and ARPU from your plans.Net Revenue Retention CalculatorNRR and GRR from expansion, contraction and churn, with annualized NRR for monthly data.Net Operating Income CalculatorNOI for rental property: rent, vacancy, other income and itemized expenses with expense ratio.Poshmark Fee CalculatorPoshmark fee, earnings and profit, or the list price needed for your payout.Pre Money Post Money Valuation CalculatorPost-money valuation, investor and founder ownership and price per share for a funding round.Price Elasticity of Demand CalculatorFind the price elasticity of demand with the midpoint or simple method, plus revenue change.Freelance Project Price CalculatorTurn a task list with hours into a project quote with contingency, profit, tax and deposit.Rental Property Cash Flow CalculatorMonthly cash flow, NOI, cap rate, cash-on-cash return and the 1% rule for a rental property.Return on Assets CalculatorROA from net income and average total assets, plus operating ROA and adjusted ROA.Return on Equity CalculatorROE from net income and average equity, with a 3-step DuPont breakdown of what drives it.Rule of 40 CalculatorSaaS Rule of 40 score from revenue growth and profit margin, with pass/fail and the gap.Sales Funnel CalculatorCustomers, SQLs, MQLs, leads and visitors needed to hit a revenue goal.Shopify Fee CalculatorShopify fees by plan, payout, profit and margin, with third-party gateway fees.Solar Payback Period CalculatorSolar panel payback years, 25-year savings, ROI and cost per kWh with a cash-flow chart.Square Fee CalculatorSquare processing fees, net deposit and the price to cover fees by payment method.Tiered Pricing CalculatorPrice a quantity with tiers: total, per-tier breakdown and unit price, graduated or volume.
See all 209 Business & Marketing Calculators →