Free Tax-Loss Harvesting Calculator - Calculate Tax Savings
Calculate potential tax savings from tax-loss harvesting strategies
Formula & Methodology
Tax-loss harvesting involves selling securities at a loss to offset capital gains tax liabilities. If your losses exceed your gains, you can use up to $3,000 to offset ordinary income, and carry the rest forward to future tax years.
- Net Capital Gain/Loss = Total Gains - Total Losses
- Harvested Losses = min(Total Losses, Total Gains)
- Tax Savings = Harvested Losses × (Tax Rate / 100)
- Remaining Loss Carryforward = Total Losses - Harvested Losses
Worked Example
Using the Tax-Loss Harvesting Calculator: apply the formula above to your input values. For instance, Net Capital Gain/Loss = Total Gains - Total Losses, then Harvested Losses = min(Total Losses, Total Gains). The tool performs each step instantly and shows the result.
Frequently Asked Questions
What is tax-loss harvesting?
Selling investments at a loss to offset capital gains (and up to $3,000 of ordinary income), lowering your tax bill while staying invested.
What is the wash-sale rule?
If you rebuy the same or a substantially identical security within 30 days, the loss is disallowed for tax purposes, so plan replacements carefully.
Do harvested losses expire?
No. Unused capital losses carry forward to future years, offsetting later gains until they are fully used.