Question 1

How do I calculate crypto profit?

Accepted Answer

Crypto profit = (Exit Price − Entry Price) × Quantity for long positions, or (Entry Price − Exit Price) × Quantity for shorts. With leverage, multiply the margin by the leverage to get the position size, calculate the raw PnL on that size, then subtract entry and exit trading fees to get net profit.

Question 2

How is ROE different from ROI in crypto trading?

Accepted Answer

ROI (Return on Investment) is calculated as Net Profit ÷ Position Size × 100. It shows the return relative to total exposure. ROE (Return on Equity) is Net Profit ÷ Margin Capital × 100, showing the return relative to your actual capital committed. With 10x leverage, a 5% ROI becomes a 50% ROE — the same profit but expressed against your smaller margin deposit.

Question 3

How does leverage increase profit (and risk)?

Accepted Answer

Leverage multiplies your position size without requiring more capital. With $1,000 and 10x leverage, you control a $10,000 position. A 5% price move generates $500 profit (50% ROE) instead of $50 (5% ROE). However, the same mechanism applies to losses — a 5% move against you loses $500, and a 10% move would wipe out your entire $1,000 margin (liquidation).

Question 4

How is liquidation price calculated?

Accepted Answer

For a long position: Liquidation Price ≈ Entry Price × (1 − 1/Leverage). For a short: Liquidation Price ≈ Entry Price × (1 + 1/Leverage). For example, a long at $60,000 with 10x leverage liquidates at approximately $60,000 × (1 − 0.1) = $54,000. Actual liquidation prices vary slightly by exchange due to maintenance margin requirements.

Question 5

Are trading fees included in the calculation?

Accepted Answer

Yes. This calculator includes both entry and exit fees, applied to the full position size (not just the margin). You can specify separate maker and taker fee rates and an optional funding fee for perpetual futures contracts. All fees are deducted to produce the net profit/loss figure.

Question 6

How do short positions make money?

Accepted Answer

In a short position, you borrow an asset and sell it at the current price, then buy it back later at a lower price — pocketing the difference. If Bitcoin is at $60,000 and you short it, and the price falls to $55,000, your profit is $5,000 per coin (before fees). If the price rises instead, you lose the difference.

Question 7

What is a good risk-reward ratio?

Accepted Answer

Most professional traders target a minimum 1:2 risk-reward ratio — risking $1 to make $2. A 1:3 ratio is considered strong. A ratio below 1:1 means you need a win rate above 50% just to break even. Higher ratios allow profitable trading even with win rates below 50%, which is why risk-reward management is considered more important than win rate alone.

Question 8

What is the break-even price?

Accepted Answer

The break-even price is the exit price at which your trade neither makes nor loses money — after all fees are accounted for. For a long trade, it's slightly above the entry price (entry price + fee cost spread across position). Knowing your break-even price helps you set realistic minimum targets before entering a trade.

	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

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%

Crypto Profit Calculator

Position Variables

What Is Crypto Profit and Loss (PnL)?

Long vs Short Positions

ROI vs ROE in Crypto Trading

How Leverage Works — Risk & Reward Table

How Trading Fees Impact Crypto Profits

Frequently Asked Questions