What Is Crypto Profit and Loss (PnL)?
PnL — Profit and Loss — is the net gain or loss on a trading position after all costs are accounted for. In cryptocurrency trading, PnL can be split into two types:
Unrealized PnL
The paper gain or loss on a position that is still open. Your entry and current market price determine this, but it has not been locked in — it can swing positive or negative until you close the trade.
Realized PnL
The actual profit or loss after you close a position. Once you sell, the P&L is locked in and credited or debited from your account balance. Trading fees, funding fees, and price slippage all reduce realized PnL.
Long vs Short Positions
| Long Position | Short Position | |
|---|---|---|
| Profit when | Price rises above entry | Price falls below entry |
| Loss when | Price falls below entry | Price rises above entry |
| Used for | Bullish market outlook | Bearish market outlook |
| Liq. trigger | Price drops to liq. level | Price rises to liq. level |
| Example | Buy BTC at $60K, sell at $65K = +$5K | Short BTC at $60K, cover at $55K = +$5K |
ROI vs ROE in Crypto Trading
ROI and ROE measure profitability from different perspectives. Understanding the difference is critical when using leverage:
ROI — Return on Investment
Measures return relative to total position size (full exposure). Formula: Net Profit ÷ Position Size × 100.
$500 profit on $10,000 position = 5% ROI
ROE — Return on Equity
Measures return relative to your actual capital (margin deposit). Formula: Net Profit ÷ Margin × 100.
$500 profit on $1,000 margin (10× leverage) = 50% ROE
How Leverage Works — Risk & Reward Table
A $1,000 margin on a 5% price move in your favor, at different leverage levels:
| Leverage | Position Size | +5% Price Move Profit | −5% Price Move Loss | Liq. Threshold |
|---|---|---|---|---|
| 1× | $1,000 | +$50 | −$50 | −100% |
| 5× | $5,000 | +$250 | −$250 | −20% |
| 10× | $10,000 | +$500 | −$500 | −10% |
| 20× | $20,000 | +$1,000 | −$1,000 | −5% |
| 50× | $50,000 | +$2,500 | −$2,500 | −2% |
How Trading Fees Impact Crypto Profits
Fees in leveraged trading apply to the full position size, not just your margin. This means fees can consume a disproportionate share of your capital on small or frequent trades. There are three main fee types:
Maker Fee
Charged when you add liquidity by placing a limit order that doesn't fill immediately. Typically 0.01%–0.05%. Lower than taker fees.
Taker Fee
Charged when you remove liquidity by placing a market order that fills immediately. Typically 0.05%–0.10%. Always applied on your exit.
Funding Rate
A payment exchanged between long and short perpetual-futures positions at exchange-defined intervals. A positive rate generally charges longs and credits shorts; the reverse applies when it is negative.
Use This Estimate With Other Finance Tools
Compare the return on a non-leveraged investment with the ROI Calculator. Work out price movements and fee percentages with the Percentage Calculator. For long-term, non-trading growth scenarios, use the Compound Interest Calculator, or compare purchasing-power changes with the Inflation Calculator.
Risk Disclaimer: Cryptocurrency trading involves substantial risk of loss. Leverage can rapidly deplete posted margin, and cross-margin positions may affect more of an account balance. This calculator is for educational and informational purposes only and does not constitute financial or investment advice. Liquidation prices are approximate — actual liquidation levels vary by exchange and include maintenance-margin requirements, fees, and mark-price rules. Verify figures with your exchange before placing a trade.