Capital gain
The positive difference between an asset’s selling price and purchase price, before adjustments.
Definition
The positive difference between an asset’s selling price and purchase price, before adjustments.
Why this concept matters
It separates growth in value from income such as interest or dividends.
What to watch
Fees and tax may reduce the gain actually retained.
Simple example
An asset bought for €1,000 and sold for €1,150 creates a €150 gross capital gain.
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