Cryptocurrency Profit & ROI Calculator
Calculate your potential gains or losses for any digital asset investment.
How to Calculate Cryptocurrency Profit
Calculating profit in the volatile world of cryptocurrency is more than just subtracting your buy price from your sell price. To get an accurate picture of your net gains, you must account for exchange fees, network costs, and the specific amount of the asset held.
The Formula for Crypto ROI
To calculate your return on investment manually, use the following steps:
- Step 1: Determine your net investment by adding the buy fee to your initial capital.
- Step 2: Calculate the number of coins held: (Investment Amount) / Buy Price.
- Step 3: Calculate the gross sell value: (Coins Held × Sell Price).
- Step 4: Deduct the sell fee from the gross sell value to find your net proceeds.
- Step 5: Subtract your initial investment from the net proceeds to find your net profit.
Real-World Example
Imagine you invest $5,000 into Bitcoin when the price is $40,000. Your exchange charges a 0.5% fee for both buying and selling.
First, your $5,000 purchase includes a $25 fee, meaning $4,975 goes into BTC, netting you 0.124375 BTC. If you sell when Bitcoin hits $50,000, your gross value is $6,218.75. After a 0.5% sell fee ($31.09), your net proceeds are $6,187.66. Your total profit is $1,187.66, representing a 23.75% ROI.
Why Fees Matter
Many traders overlook exchange fees. While 0.1% to 0.5% seems small, high-frequency trading or large capital movements can see these fees eat significantly into your margins. Always check if your exchange offers fee discounts for holding their native token or for high-volume accounts.
Managing Risk and Volatility
Crypto markets are known for extreme swings. It is essential to use tools like this calculator to set clear exit strategies. Knowing your "break-even" point—the price at which your sell proceeds equal your total investment including all fees—is vital for successful long-term trading.