How to Calculate Crypto Profit and Loss
Understanding how to calculate your cryptocurrency profit and loss is essential for any trader or investor. Whether you're day trading or holding long-term, knowing your actual returns helps you make informed decisions.
The Basic Formula
Profit/Loss = (Sell Price - Buy Price) × QuantityThis simple formula gives you the raw profit or loss. If you bought 0.1 BTC at $40,000 and sold at $50,000, your profit would be ($50,000 - $40,000) × 0.1 = $1,000.
Accounting for Fees
Real-world trading involves fees. Most exchanges charge between 0.1% to 0.5% per trade. You need to account for both buy and sell fees:
True Profit = Exit Value - Investment - Total FeesCalculating ROI
Return on Investment (ROI) shows your percentage gain or loss:
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100A 50% ROI means you gained half of what you invested. A -20% ROI means you lost 20% of your initial investment.
Example Calculation
- Investment: $1,000
- Buy Price: $50,000 per BTC
- Coins Purchased: 0.02 BTC
- Buy Fee (0.5%): $5
- Sell Price: $60,000 per BTC
- Exit Value: $1,200
- Sell Fee (0.5%): $6
- Net Profit: $1,200 - $1,000 - $5 - $6 = $189
- ROI: 18.9%
Calculate Your Crypto Profits
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