Calculating your profit or loss on cryptocurrency investments is crucial for understanding your portfolio's performance and making informed trading decisions.
This calculator helps you determine your net profit after accounting for the initial investment, selling price, and trading fees.
The Math Behind the Calculator
The core formula to calculate crypto profit is as follows:
Total Purchase Cost: This is the amount you spent to acquire the cryptocurrency.
Total Purchase Cost = Purchase Price per Coin * Number of Coins Purchased
Total Selling Revenue: This is the total amount you receive from selling the cryptocurrency.
Total Selling Revenue = Selling Price per Coin * Number of Coins Purchased
Trading Fees: Fees are typically charged as a percentage of the transaction value (both buy and sell).
Total Trading Fees = (Total Purchase Cost * Trading Fees Percentage / 100) + (Total Selling Revenue * Trading Fees Percentage / 100)(Note: Many platforms calculate fees on the transaction value. This formula assumes fees apply to both buy and sell transactions.)
Net Profit/Loss: This is your final profit or loss after all costs.
Net Profit/Loss = Total Selling Revenue - Total Purchase Cost - Total Trading Fees
Example Calculation
Let's say you bought 1.5 Bitcoin (BTC) at a price of $30,000 per BTC. You later sold all 1.5 BTC at a price of $40,000 per BTC. The trading fees on the exchange are 0.1% for both buying and selling.
Net Profit/Loss: $60,000 – $45,000 – $105 = $14,895
In this scenario, your net profit would be $14,895.
Why Use a Crypto Profit Calculator?
Track Performance: Accurately measure the success of your trades.
Tax Reporting: Essential for calculating capital gains/losses for tax purposes.
Informed Decisions: Helps in setting profit targets and stop-loss levels.
Cost Management: Highlights the impact of trading fees, encouraging users to seek lower-fee exchanges or strategies.
Always remember that cryptocurrency markets are volatile. This calculator provides an estimate based on the inputs provided and does not account for future market fluctuations or other potential costs like withdrawal fees or taxes.
function calculateCryptoProfit() {
var purchasePrice = parseFloat(document.getElementById("purchasePrice").value);
var numberOfCoins = parseFloat(document.getElementById("numberOfCoins").value);
var sellingPrice = parseFloat(document.getElementById("sellingPrice").value);
var tradingFeesPercentage = parseFloat(document.getElementById("tradingFeesPercentage").value);
var resultContainer = document.getElementById("resultContainer");
var profitResultElement = document.getElementById("profitResult");
// Clear previous results and errors
resultContainer.style.display = "none";
profitResultElement.textContent = "0.00";
// Validate inputs
if (isNaN(purchasePrice) || isNaN(numberOfCoins) || isNaN(sellingPrice) || isNaN(tradingFeesPercentage)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (purchasePrice < 0 || numberOfCoins < 0 || sellingPrice < 0 || tradingFeesPercentage < 0) {
alert("Inputs cannot be negative.");
return;
}
var totalPurchaseCost = purchasePrice * numberOfCoins;
var totalSellingRevenue = sellingPrice * numberOfCoins;
// Calculate trading fees based on both purchase and selling transactions
var purchaseFees = totalPurchaseCost * (tradingFeesPercentage / 100);
var sellingFees = totalSellingRevenue * (tradingFeesPercentage / 100);
var totalTradingFees = purchaseFees + sellingFees;
var netProfit = totalSellingRevenue – totalPurchaseCost – totalTradingFees;
// Format the result to two decimal places and add currency symbol
var formattedProfit = netProfit.toFixed(2);
profitResultElement.textContent = formattedProfit;
// Show the result container
resultContainer.style.display = "block";
}