FIFO (First-In First-Out) Calculator
Calculate your capital gains using the FIFO method by entering your buy and sell transactions below.
Buy Transactions
| Date | Shares | Price | Fees | Cost Basis | Action |
|---|
Sell Transactions
| Date | Shares | Price | Fees | Proceeds | Action |
|---|
Understanding FIFO Method for Capital Gains Calculation
The FIFO (First-In, First-Out) method is a common approach for calculating capital gains on investments. This method assumes that the first assets you purchased are the first ones you sell.
How FIFO Works
When you sell an asset, FIFO matches the sale with the earliest purchases first. This can significantly impact your capital gains calculations, especially in volatile markets where purchase prices vary over time.
Why Use FIFO?
- Tax Reporting: Many tax authorities require FIFO as the default method if you don’t specify otherwise.
- Simplicity: FIFO is straightforward to understand and implement.
- Consistency: Provides consistent results that are easy to audit.
Example FIFO Calculation
If you bought 10 shares at $10 each in January, then 10 more at $15 each in February, and later sold 15 shares at $20 each, FIFO would calculate the gain as:
- 10 shares from January purchase: ($20 – $10) × 10 = $100 gain
- 5 shares from February purchase: ($20 – $15) × 5 = $25 gain
- Total capital gain = $125
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FIFO (First-In First-Out) Calculator
Calculate your capital gains using the FIFO method by entering your buy and sell transactions below.
Buy Transactions
| Date | Shares | Price | Fees | Cost Basis | Action |
|---|
Sell Transactions
| Date | Shares | Price | Fees | Proceeds | Action |
|---|
Understanding FIFO Method for Capital Gains Calculation
The FIFO (First-In, First-Out) method is a common approach for calculating capital gains on investments. This method assumes that the first assets you purchased are the first ones you sell.
How FIFO Works
When you sell an asset, FIFO matches the sale with the earliest purchases first. This can significantly impact your capital gains calculations, especially in volatile markets where purchase prices vary over time.
Why Use FIFO?
- Tax Reporting: Many tax authorities require FIFO as the default method if you don’t specify otherwise.
- Simplicity: FIFO is straightforward to understand and implement.
- Consistency: Provides consistent results that are easy to audit.
Example FIFO Calculation
If you bought 10 shares at $10 each in January, then 10 more at $15 each in February, and later sold 15 shares at $20 each, FIFO would calculate the gain as:
- 10 shares from January purchase: ($20 – $10) × 10 = $100 gain
- 5 shares from February purchase: ($20 – $15) × 5 = $25 gain
- Total capital gain = $125