Crypto Investment Calculator
Estimate your potential profits and ROI for any cryptocurrency trade.
How to Calculate Your Cryptocurrency ROI
Understanding the math behind your crypto trades is essential for effective risk management and portfolio growth. Whether you are HODLing Bitcoin for the long term or day trading altcoins, this calculator helps you visualize the outcome before you execute a trade.
The Crypto Profit Formula
The calculation follows a specific logic that accounts for the purchase power of your initial capital and the friction of exchange fees:
- Quantity Purchased: Investment Amount / Buy Price
- Gross Value: Quantity × Sell Price
- Total Fees: (Investment Amount × Fee%) + (Gross Value × Fee%)
- Net Profit: Gross Value – Investment Amount – Total Fees
Real-World Example
Imagine you invest $5,000 into Ethereum when the price is $2,500. You plan to sell when it hits $4,000. Assuming a 0.1% exchange fee:
- You buy 2 ETH (minus the initial fee).
- At $4,000, your 2 ETH is worth $8,000.
- After subtracting your $5,000 investment and roughly $13 in total fees, your net profit is $2,987.
- Your ROI would be approximately 59.74%.
Why Include Trading Fees?
Many novice investors forget to account for exchange fees. While 0.1% or 0.5% seems small, these costs apply both when you buy and when you sell. In high-frequency trading or when dealing with large volumes, these fees can significantly impact your net take-home pay.
Strategies to Improve Your Returns
Successful crypto investing isn't just about picking the right coin; it's about entry and exit strategy. Consider using Dollar Cost Averaging (DCA) to lower your average buy price over time, or setting "Stop-Loss" orders to protect your capital if the market moves against your prediction.