How to Calculate Crypto Profit and Loss
Most traders look at the price difference and stop there — that's gross profit. What actually hits your wallet is net profit, which subtracts the fees paid to open and close the trade.
Gross PnL = (Exit − Entry) × Quantity × Leverage
Fees = Position Size × Leverage × Fee Rate × 2
Net PnL = Gross PnL − Fees
PnL % = Net PnL / Position Size × 100Why Fees Matter More at High Leverage
At 10× leverage on a $5,000 position, your notional exposure is $50,000. A 0.05% taker fee on both sides equals $50 in fees. If your trade only made $200 gross, you just lost 25% of your profit to fees. This is why scalpers at high leverage often underperform — fees erode thin margins fast.
Switching to limit orders (maker) reduces fees to 0.01–0.02%, cutting the fee drag by up to 75%.
Long vs Short: How Direction Affects PnL
For a long position, profit = price increase. For a short position, profit = price decrease. The formula flips the entry/exit difference, but fees are identical in both directions — you always pay to open and close.
What is the Break-Even Price?
The break-even exit price is the minimum price you need to reach just to cover fees and avoid a loss:
Long: Break-even = Entry + (Total Fees / Quantity / Leverage)
Short: Break-even = Entry − (Total Fees / Quantity / Leverage)For short-term trades, always calculate this before entering — especially at high leverage where fees represent a meaningful portion of the move.