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How-to guide

How to Calculate Capital Gain Percentage: Formula, Steps & Examples

Learn how to calculate Capital Gain Percentage — the formula explained step by step, with worked examples and a free calculator to check your answer.

By Aarav Mehta, CFA, MBA Finance · Updated Jun 2026 · 2 min read

Calculating your capital gain is straightforward once you know the Capital Gain Percentage formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Capital Gain Percentage Calculator.

What is Capital Gain Percentage?

The Capital Gain Percentage calculation tells you your capital gain from a few simple inputs. The figure you are solving for here is the capital gain, expressed in percent.

The Capital Gain Percentage formula

The core formula is:

Capital gain = (Sale price - Purchase price) ÷ Purchase price × 100

Here is what each input means:

  • Purchase price — a money amount. Example: ₹1,000.
  • Sale price — a money amount. Example: ₹1,200.

How to calculate it step by step

  • Write down the purchase price (for example, ₹1,000).
  • Write down the sale price (for example, ₹1,200).
  • Apply the formula above to get your capital gain.
  • Double-check the result with the Capital Gain Percentage Calculator.

Worked examples

Example 1

Input / OutputValue
Purchase price₹1,000
Sale price₹1,200
Capital gain20.00%
Gain amount₹200.00

With purchase price of ₹1,000 and sale price of ₹1,200, the capital gain works out to 20.00%.

Example 2

With purchase price of ₹2,000 and sale price of ₹1,200, the capital gain works out to -40.00%.

ResultValue
Capital gain-40.00%
Gain amount-₹800.00

Example 3

With purchase price of ₹500 and sale price of ₹1,200, the capital gain works out to 140.00%.

ResultValue
Capital gain140.00%
Gain amount₹700.00

Tips for an accurate result

  • Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
  • Round only at the very end. Rounding inputs early can shift the final answer noticeably.
  • Re-run the numbers whenever an input changes, rather than estimating from an old result.
  • Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).

Prefer not to do the maths by hand? — the Capital Gain Percentage Calculator does it instantly, for free, with the formula and a worked example built in.

Continue exploring finance calculators with these tools: SIP Calculator, EMI Calculator, CAGR Calculator, FD Calculator, Effective Annual Rate (EAR) Calculator.

Calculators in this guide

Frequently asked questions

The formula is: Capital gain = (Sale price - Purchase price) ÷ Purchase price × 100. With purchase price of ₹1,000 and sale price of ₹1,200, the capital gain works out to 20.00%.

Gather each input, apply the formula step by step keeping your units consistent, and round only at the end. You can verify your answer instantly with the Capital Gain Percentage Calculator.

It uses the standard formula with exact arithmetic, so the result is correct for the inputs you enter. Bear in mind that real-world outcomes can still differ when underlying assumptions change.

The capital gain is expressed in percent. Make sure your inputs use matching units so the result is correct.

Aarav Mehta · CFA, MBA Finance

Aarav reviews every finance formula on CalcHub for accuracy.