Glossary Finance

Capital gains

A capital gain is the profit from selling an asset, such as shares or property, for more than you paid for it.

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In more detail

The gain is the sale price minus the cost basis. Many countries tax it only when realised, and some tax gains on assets held for a long time at lower rates. In the US the cut-off is one year.

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See also

  • Glossary Return on investment (ROI)
    Return on investment (ROI) is the gain or loss on an investment as a percentage of what was invested.
  • Glossary Equity
    Equity is the part of an asset you truly own: its current value minus what you still owe against it.
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