Crypto Profit Calculator
Calculate your potential gains, losses, and ROI for any cryptocurrency trade.
How to Calculate Crypto Profits
In the volatile world of cryptocurrency, understanding your actual net profit is crucial. Many traders overlook the impact of exchange fees and slippage, which can significantly eat into your margins. To calculate your profit accurately, you must track your entry price, exit price, and the various fees associated with both ends of the trade.
The Math Behind the Calculation
Our calculator uses a multi-step formula to ensure precision:
- Initial Purchase: Subtract the buying fee from your initial investment, then divide by the coin's buy price to find your total coin quantity.
- Gross Exit Value: Multiply the number of coins by your target sell price.
- Final Deductions: Subtract the selling fee from the gross exit value to get your net exit value.
- Net Profit: Subtract your original investment from the net exit value.
Example Calculation
Suppose you invest $1,000 into Bitcoin when the price is $40,000. Your exchange charges a 0.1% fee for both buying and selling. You decide to sell when Bitcoin reaches $45,000.
- Initial Coins: $999 / $40,000 = 0.024975 BTC
- Gross Sell: 0.024975 * $45,000 = $1,123.875
- Net Sell after 0.1% Fee: $1,122.75
- Total Net Profit: $122.75 (ROI: 12.28%)
Understanding ROI in Crypto
Return on Investment (ROI) is a percentage that expresses the efficiency of your trade. A positive ROI indicates a gain, while a negative ROI signifies a loss. Because crypto markets move fast, even a small percentage difference in fees or price entry can change a profitable trade into a break-even one. Always account for transaction costs before hitting the "buy" button.