This illustrator helps learn about the effect of different cost basis methods on stock sale gains. See Investing in Stock - 9: Stock Cost Basis Methods to understand cost basis.

Disclaimer

This tool is only meant as an illustration:

• It uses only the stock's buy price and the duration the stock was held.
• It simulates any rise or fall in the stock's value.
• It does not take into consideration other factors that go into calculating cost basis (such as stock splits, dividend reinvestment, vesting period - in the case of stock options, etc.).
• Use the illustrator to learn about the different cost basis methods.
• Don't use it for your tax planning! Your total tax depends on various things and not just on stocks.

Assumptions

To focus on the effect of cost basis methods alone and to keep things simple, we make the following assumptions:

• There were no stock splits between the time we bought the stock and when we sold it.
• No dividends were paid out.
• We only take into account only whole years.