Capital Gains Loss Calculator

Formula

To calculate the Capital Gains Loss (CPL):

\[ CPL = PP - SP \]

Where:

$CPL$ is the Capital Gains Loss in dollars
$PP$ is the Purchase Price in dollars
$SP$ is the Sale Price in dollars

What is Capital Gains Loss?

Capital Gains Loss refers to the loss incurred when the sale price of an asset is less than its purchase price. This loss can be used to offset capital gains and reduce taxable income. Understanding capital gains loss is important for tax planning and investment strategies.

Example Calculation 1

Let's assume the following values:

Purchase Price ($PP$) = $10,000
Sale Price ($SP$) = $8,000

Using the formula:

\[ CPL = 10000 - 8000 = 2000 \text{ dollars} \]

The Capital Gains Loss is $2,000.

Example Calculation 2

Let's assume the following values:

Purchase Price ($PP$) = $15,000
Sale Price ($SP$) = $12,000

Using the formula:

\[ CPL = 15000 - 12000 = 3000 \text{ dollars} \]

The Capital Gains Loss is $3,000.