1. Buy Amount: '+coinsHeld.toFixed(8)+' units
2. Buy Fee: $'+buyFee.toFixed(2)+'
3. Gross Exit: $'+grossExitValue.toFixed(2)+'
4. Sell Fee: $'+sellFee.toFixed(2)+'
5. Net Profit = Gross Exit – Total Fees – Initial Capital';document.getElementById('stepDetails').innerHTML=stepsHTML;document.getElementById('stepDetails').style.display='block';}else{document.getElementById('stepDetails').style.display='none';}}
How to Use the Crypto Calculator
Investors and traders use a crypto calculator to determine potential profits or losses before executing a trade. Because the cryptocurrency market is highly volatile, understanding the impact of entry and exit prices—along with exchange fees—is essential for risk management.
Follow these steps to calculate your trade outcomes:
- Investment Amount
- The total amount of fiat currency (like USD or EUR) you plan to spend or have already invested.
- Buy Price
- The price of a single unit of the cryptocurrency at the time of purchase.
- Sell Price
- The price you expect to sell the cryptocurrency for in the future.
- Investment Fees
- The percentage charged by the exchange for both buying and selling (e.g., 0.1% for Binance or 0.5% for Coinbase Pro).
How It Works: The Crypto Profit Formula
A crypto calculator doesn't just subtract the buy price from the sell price. It must account for the volume of coins held and the "friction" of trading fees. The mathematical logic is as follows:
Profit = ((Investment / Buy Price) × Sell Price) – Investment – Total Fees
- Coins Purchased: Calculated by dividing your investment by the buy price.
- Gross Value: The value of those coins at the current sell price.
- Total Fees: The sum of the fee paid during the buy transaction and the fee paid during the sell transaction.
- ROI: Expressed as a percentage to show the efficiency of the investment relative to the starting capital.
Calculation Example
Scenario: You invest $5,000 into Bitcoin when the price is $40,000. You plan to sell when Bitcoin reaches $55,000. Your exchange charges a 0.2% fee on every trade.
Step-by-step solution:
- Amount of BTC: $5,000 / $40,000 = 0.125 BTC
- Buy Fee: $5,000 × 0.002 = $10.00
- Gross Sell Value: 0.125 BTC × $55,000 = $6,875.00
- Sell Fee: $6,875 × 0.002 = $13.75
- Total Fees: $10.00 + $13.75 = $23.75
- Net Profit: ($6,875 – $5,000) – $23.75 = $1,851.25
- ROI: ($1,851.25 / $5,000) × 100 = 37.03%
Common Questions
Does this calculator include taxes?
No, this crypto calculator focuses on gross and net profit based on trading fees only. Capital gains tax varies significantly by country (e.g., short-term vs. long-term gains in the US). You should consult a tax professional for your specific liability.
Why are fees so important?
In high-frequency trading or small-margin trades, fees can consume a large portion of your profit. For example, if you are trading for a 1% gain but your exchange fees are 0.5% for buying and 0.5% for selling, your net profit is zero.
What is ROI?
ROI stands for Return on Investment. It is a ratio that compares the gain or loss from an investment relative to its cost. It is a universal way to compare the performance of different assets, such as comparing Bitcoin performance to the S&P 500.