Futures Profit Calculator
Use this calculator to determine the potential profit or loss from a futures trade, accounting for entry price, exit price, contract size, number of contracts, trade type (long/short), and commissions.
e.g., 50 for E-mini S&P 500, 12.50 for Crude Oil
Total commission for opening and closing one contract.
Understanding Futures Trading Profit and Loss
Futures contracts are financial derivatives that obligate parties to transact an asset at a predetermined future date and price. They are widely used for hedging or speculating on the price movement of commodities, indices, currencies, and more. Calculating your potential profit or loss is crucial for risk management and trade planning.
Key Components of Futures Profit/Loss:
- Entry Price: This is the price at which you initially buy (go long) or sell (go short) a futures contract.
- Exit Price: This is the price at which you close your position, either by selling a long contract or buying back a short contract.
- Contract Size (Multiplier): Each futures contract represents a specific quantity of the underlying asset. The contract size, or multiplier, determines the monetary value of each point of price movement. For example, the E-mini S&P 500 futures contract has a multiplier of $50, meaning a one-point move in the index translates to a $50 change in the contract's value.
- Number of Contracts: This refers to how many individual futures contracts you are trading. Your total profit or loss scales directly with the number of contracts.
- Trade Type (Long/Short): This specifies whether you are betting on the price to rise (long) or fall (short). This is critical for determining profit or loss.
- Commission per Contract (Round Turn): Trading futures involves fees. A "round turn" commission covers both the opening and closing of a single contract. These commissions can vary significantly between brokers and should always be factored into your calculations.
How Futures Profit/Loss is Calculated:
The core of futures profit/loss calculation revolves around the difference between your entry and exit prices, multiplied by the contract size and the number of contracts. Commissions are then subtracted to arrive at the net profit or loss. The trade type (long or short) determines how the price movement translates into profit or loss.
For a Long Position (Buy Low, Sell High):
- Price Difference = Exit Price – Entry Price
- Gross Profit/Loss per Contract = Price Difference × Contract Size
- Total Gross Profit/Loss = Gross Profit/Loss per Contract × Number of Contracts
- Net Profit/Loss = Total Gross Profit/Loss – (Commission per Contract × Number of Contracts)
For a Short Position (Sell High, Buy Low):
- Price Difference = Entry Price – Exit Price (Note the inversion compared to long)
- Gross Profit/Loss per Contract = Price Difference × Contract Size
- Total Gross Profit/Loss = Gross Profit/Loss per Contract × Number of Contracts
- Net Profit/Loss = Total Gross Profit/Loss – (Commission per Contract × Number of Contracts)
Our calculator handles this logic automatically based on your selected trade type.
Example Scenario:
Let's consider two scenarios for E-mini S&P 500 futures (ES) with a contract size of $50 per point, and a commission of $4.00 per contract (round turn).
Scenario 1: Long Position
- You buy 2 contracts at an Entry Price of 4500.
- You later sell these 2 contracts at an Exit Price of 4510.
- Trade Type: Long
Using the calculator:
- Price Difference = 4510 – 4500 = 10 points
- Gross Profit per Contract = 10 points × $50/point = $500
- Total Gross Profit = $500/contract × 2 contracts = $1000
- Total Commission = $4.00/contract × 2 contracts = $8.00
- Net Profit = $1000 – $8.00 = $992.00
Scenario 2: Short Position
- You sell 1 contract at an Entry Price of 4520.
- You later buy back this 1 contract at an Exit Price of 4515.
- Trade Type: Short
Using the calculator:
- Price Difference (for short) = 4520 – 4515 = 5 points
- Gross Profit per Contract = 5 points × $50/point = $250
- Total Gross Profit = $250/contract × 1 contract = $250
- Total Commission = $4.00/contract × 1 contract = $4.00
- Net Profit = $250 – $4.00 = $246.00
This calculator helps you quickly assess the financial outcome of such trades, allowing for better planning and decision-making in your futures trading strategy.