How crypto profit is calculated
For a spot trade the arithmetic is the same as for any asset: coins bought = money in ÷ entry price, and profit = (exit price − entry price) × coins. What is specific to crypto is what gets subtracted afterwards.
- Fees on both sides. Exchanges charge a percentage of the trade value when you buy and again when you sell. With a 0.1% fee per side, a round trip costs about 0.2% of the position, so a coin has to rise by a little more than 0.2% just to break even: from 60,000 to 60,120.
- Funding on perpetual contracts. Perpetual futures have no expiry, so exchanges balance them with a funding payment, usually every 8 hours. When the rate is positive, longs pay shorts, and the other way around when it is negative. It is charged on the position value, so on a leveraged position it adds up.
- Tax is separate. This calculator shows profit before tax. In many countries a profit on a sale or a swap is taxable and a loss may be deductible, with rules that differ by place. Ask a tax professional.
What leverage changes, and what it does not
Leverage means you control a position larger than the money you put in. A 10× position of $1,000 is worth $10,000. The price move you need and the profit in dollars per coin are the same; what changes is the return on your money, and your risk. The same 5% rise that returns 4.8% unleveraged returns 47.9% at 10×. A 5% drop costs about $520 at 10× and, at 20×, liquidates the position and loses about the whole $1,000.
The liquidation price, and why it is an estimate
If you put in $1,000 at 10×, the exchange lets the position lose almost all of that $1,000 and no more, so it closes the position when your remaining margin falls to a minimum called the maintenance margin. For an isolated-margin long, the standard estimate is entry × (1 − 1 ÷ leverage + maintenance margin). At 10× on a 60,000 entry with a 0.5% maintenance margin that is 60,000 × (1 − 0.1 + 0.005) = 54,300, which is 9.5% below the entry. For a short the move is up: entry × (1 + 1 ÷ leverage − maintenance margin).
The real figure can differ. Exchanges use tiered maintenance margins that rise with position size, include fees and funding in the margin calculation, and trigger on a mark price that is not the last traded price. Use the number here to see the scale of the risk, and read the liquidation price in your exchange's order preview before you trade. A liquidation can also carry a fee, so the loss can be slightly larger than the margin.
Reading the results
Net profit is gross profit minus fees and funding. Return on your money divides it by the margin. Break-even price is the exit that makes net profit zero, and it moves further from entry the higher your fees and the longer you hold with a positive funding rate. Exit price needed for a target works backwards from a return you want to the price that delivers it.
The formulas
coins = position value ÷ entry price
gross profit = (exit − entry) × coins × (+1 long, −1 short)
fees = fee % × (position value + coins × exit price)
funding = position value × funding rate × days × 3 × (+1 long, −1 short)
net profit = gross profit − fees − funding
return on your money = net profit ÷ margin
liquidation (long) ≈ entry × (1 − 1 ÷ leverage + maintenance margin)
liquidation (short) ≈ entry × (1 + 1 ÷ leverage − maintenance margin)If the exit is beyond the liquidation price the loss is capped at the margin. Funding assumes a constant rate. Exchange rules differ.
Worked examples
A spot trade: BTC from 60,000 to 72,000
You put in $1,000 at 60,000, which buys 0.01667 BTC. At 72,000 the coins are worth $1,200, a gross profit of $200. A 0.1% fee on the buy ($1) and on the sell ($1.20) leaves a net profit of $198, a 19.8% return. The break-even price is 60,120.
The same $1,000, down 20%
If BTC falls to 48,000 instead, the position is worth $800. The loss is $200 plus $1.80 of fees, $202 in total, or 20.2% of your money.
5% up and 5% down at different leverage
Long BTC from 60,000 with $1,000 and 0.1% fees per side. The leverage table below is the whole story: a 5% rise is worth $47.95 unleveraged, $480 at 10× and $959 at 20×. A 5% fall costs $520 at 10× but liquidates the position at 20× (estimated liquidation 57,300) and loses the margin.
| Leverage | BTC +5% (60,000 → 63,000) | Return on your $1,000 | Estimated liquidation | BTC −5% (to 57,000) |
|---|---|---|---|---|
| 1× | $47.95 | 4.8% | none | −$51.95 |
| 2× | $95.90 | 9.6% | 30,300 | −$104 |
| 5× | $240 | 24.0% | 48,300 | −$260 |
| 10× | $480 | 47.9% | 54,300 | −$520 |
| 20× | $959 | 95.9% | 57,300 | liquidated, about −$1,000 |
| 50× | $2,398 | 239.8% | 59,100 | liquidated, about −$1,000 |
Funding: holding a 10× long for 3 days
At a positive funding rate of 0.01% per 8 hours, a $10,000 position pays about $9 over 3 days (9 payments × $1). That takes $480 of net profit on the 5% rise down to $470. Small per payment, but it never stops while you hold, and the rate can be much higher in busy markets.
A short: ETH from 3,000 to 2,700 at 5×
With $2,000 of margin at 5× the position is $10,000, which sells 3.333 ETH. When price falls to 2,700 the gross profit is $1,000, and fees of 0.1% per side take $19, so the net profit is $981. The estimated liquidation is above the entry at 3,585: price rising 19.5% against a short at 5× ends it. At 3,600 it has already happened.
Frequently asked questions
How do you calculate profit on a crypto trade?
Coins = money in ÷ entry price. Profit = (exit − entry) × coins, then subtract fees on both sides, and funding if it is a perpetual. $1,000 of BTC bought at 60,000 and sold at 72,000 with a 0.1% fee per side nets $198.
How much does a coin have to rise to break even after fees?
A little more than the round-trip fee. With 0.1% per side that is about 0.2%: from 60,000 to 60,120. Leverage does not change the price move needed, but it makes the fee a larger share of your own money: $20 at 10× against $2 unleveraged on the same $1,000.
How is the liquidation price calculated?
For an isolated-margin long the usual estimate is entry × (1 − 1/leverage + maintenance margin); for a short entry × (1 + 1/leverage − maintenance margin). Exchanges differ in maintenance margin tiers, use a mark price and may add fees and funding, so confirm the figure in your exchange's order preview.
Does leverage increase my profit?
It increases the return on your money, and the loss, by the same factor. A 5% rise returns 4.8% unleveraged and 47.9% at 10×. It also brings liquidation within reach: at 20× a 5% fall is enough.
What is a funding rate?
On perpetual futures a periodic payment, usually every 8 hours, between longs and shorts that keeps the contract near the spot price. A positive rate means longs pay shorts. It is charged on the position value, so it grows with leverage and time held, and the rate changes with the market.
Do I pay tax on crypto profits?
In many countries yes: selling or swapping at a gain can be taxable, and losses may be deductible, but the rules differ by country and by how long you held. This calculator shows pre-tax figures and is not tax advice.
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Last updated November 2026. For education only. Not financial advice. Results depend on your inputs and cannot predict future performance.