Trade Profit Estimator

How to Use the Trading Profit & Risk Calculator

This trading calculator helps you estimate potential gains, manage risk, and plan your trades effectively. Follow these steps:

1. Enter Starting Balance: Input your initial trading capital
2. Set Risk per Trade: Choose the percentage of your balance you are willing to risk on each trade
3. Select Reward-to-Risk Ratio: Define how much profit you aim to make relative to your risk
4. Enter Stop Loss: Add your average stop loss in pips
5. Choose Trading Days: Select how many days you plan to trade in the period
6. Calculate Trading Plan: Click the “Calculate Trading Plan” button
7. Review Risk Amount: See how much capital is at risk per trade
8. Check Target Profit: View your expected profit for each trade
9. Analyze Projected Balance: See your estimated ending balance based on consistent performance
10. View Daily Trading Plan: Review the day-by-day trading breakdown in the table below

Understanding Trading Profit & Loss

Gross Profit vs. Net Profit

Gross Profit: The difference between selling price and buying price before fees

• Formula: (Sell Price - Buy Price) × Quantity

Net Profit: Actual profit after all fees, commissions, and costs

• Formula: Gross Profit - Total Fees - Other Costs

Return on Investment (ROI)

ROI Formula: (Net Profit ÷ Total Investment) × 100

ROI shows your percentage return on the capital invested, accounting for all costs.

Break-Even Price

The price at which you need to sell to recover your investment including all fees.

Formula: (Total Cost + Total Fees) ÷ Quantity

Trading Profit Calculation Examples

Risk Management & Position Sizing

The 1-2% Rule

Never risk more than 1-2% of your account on a single trade.

Example:

• Account: $10,000
• Max Risk: $200 (2%)
• Entry: $50
• Stop-Loss: $48 (4% below entry)
• Position Size: $200 ÷ ($50 - $48) = 100 shares max

Risk-Reward Ratio

Compare potential profit to potential loss before entering trades.

Minimum Recommended: 1:2 (risk $100 to make $200)

Professional Target: 1:3 or better

Example:

• Entry: $100
• Stop-Loss: $95 (risk $5)
• Target: $110 (reward $10)
• Risk-Reward: 1:2 ✓

Win Rate vs. Risk-Reward

You don't need a high win rate if your winners are larger than losers.

Example 1: 60% win rate, 1:1 risk-reward = Profitable

Example 2: 40% win rate, 1:3 risk-reward = Very profitable

Example 3: 70% win rate, 3:1 risk-reward = Losing money

Position Sizing Formula

Formula: (Account Size × Risk %) ÷ (Entry Price - Stop Price)

Example:

• $20,000 account, 1% risk = $200
• Entry $40, Stop $38 = $2 risk per share
• Position: $200 ÷ $2 = 100 shares

Trading Psychology & Profit Taking

Taking Profits Systematically

Scaling Out

Sell portions at different price levels

• Example: Sell 1/3 at +5%, 1/3 at +10%, 1/3 at +15%
• Locks in gains while maintaining exposure

Trailing Stop

Stop-loss that moves up with price

• Example: 5% trailing stop protects profits
• Automatically sells if price drops 5% from peak

Fixed Targets

Predetermined price levels

• Example: Sell 50% at 10% gain, let rest run
• Removes emotion from decision

Break-Even Psychology

Moving stop-loss to break-even once profitable removes risk but can get stopped out of good trades prematurely. Consider:

• Market volatility
• Normal price fluctuation
• Trade timeframe
• Alternative: Move stop to small profit instead

Types of Trading Fees

Stock Trading Fees

Commission

• Traditional Brokers: $0-$10 per trade
• Discount Brokers: $0-$7 per trade
• Modern Platforms: Often $0 (Robinhood, Webull, Fidelity)

SEC Fees

• Rate: $27.80 per $1 million of sales
• Who Pays: Seller only
• Example: $10,000 sale = $0.28 fee

FINRA Trading Activity Fee (TAF)

• Rate: $0.000166 per share sold (max $8.30 per trade)
• Who Pays: Seller only
• Example: 100 shares = $0.02 fee

Spread (Market Makers)

• Bid-Ask Spread: Difference between buy and sell price
• Hidden Cost: Especially significant in illiquid stocks
• Zero-Commission Impact: How brokers make money

Cryptocurrency Trading Fees

Maker/Taker Fees

• Maker: Add liquidity (limit orders) - 0.1-0.25%
• Taker: Remove liquidity (market orders) - 0.2-0.5%
• Volume Discounts: Higher volume = lower fees

Spread

• Wider Than Stocks: Crypto spreads can be 0.5-2%+
• Varies by Exchange: Coinbase vs. Binance vs. Kraken
• Varies by Coin: Bitcoin spreads tighter than altcoins

Network Fees (Gas Fees)

• Blockchain Transaction Costs: Ethereum gas, Bitcoin miner fees
• Variable: Can range from $1 to $100+ depending on network congestion
• When Applied: Withdrawing to external wallet

Withdrawal Fees

• Flat Fee: Many exchanges charge fixed withdrawal amounts
• Example: 0.0005 BTC to withdraw Bitcoin

Frequently Asked Questions (FAQs)

What is a Trade Profit Calculator?

A trade profit calculator is a free online tool that helps traders calculate their potential profit or loss, return on investment (ROI), and break-even prices for stock, cryptocurrency, forex, and commodity trades. Whether you're day trading, swing trading, or investing long-term, our calculator factors in buy price, sell price, quantity, fees, and commissions to give you accurate profit calculations. Essential for planning trades, managing risk, and understanding the true cost of trading after all expenses.

How do I calculate profit on a stock trade?

Subtract your purchase price from your sale price, multiply by the number of shares, then subtract all fees (commissions, SEC fees, TAF). The formula is: [(Sell Price - Buy Price) × Quantity] - Total Fees = Net Profit.

What is a good ROI for day trading?

Day traders typically aim for 0.5-2% ROI per successful trade, though this varies widely. Professional day traders might achieve 1-3% monthly returns (12-36% annually), but most beginners lose money. Consistency matters more than individual trade size.

Why is my actual profit less than expected?

Hidden costs reduce profits: bid-ask spread, commission, exchange fees, SEC fees, slippage, price impact on large orders, and taxes. Always calculate net profit (after all costs) rather than gross profit.

How much do trading fees affect profit?

For small trades, fees can consume 1-5% of profits. A $100 trade with $5 in fees needs 5% gain just to break even. Larger trades have proportionally smaller fee impact. This is why professional traders use larger position sizes.

What is the break-even price?

The price at which you recover your total investment including all fees. You must sell above break-even to profit. Calculate: (Total Purchase Cost + All Fees) ÷ Quantity = Break-Even Price.

Should I include taxes in my profit calculation?

For realistic planning, yes. Short-term capital gains (under 1 year) are taxed as ordinary income (10-37%). Long-term gains (over 1 year) are taxed at 0%, 15%, or 20% depending on income. Taxes significantly impact net returns.

How do crypto fees compare to stock fees?

Crypto fees are typically higher: 0.1-1% per trade vs. $0-0.05% for stocks. Crypto also has wider spreads and withdrawal/network fees. However, 24/7 trading and no pattern day trader rules offer advantages.

What is slippage and how does it affect profit?

Slippage is the difference between expected and actual execution price, occurring with market orders or in volatile/illiquid markets. Can cost 0.1-1%+ per trade. Use limit orders to control slippage.

How can I reduce trading fees?

Use commission-free brokers, trade larger positions (better fee-to-profit ratio), choose limit orders over market orders, hold positions longer than one year (lower tax rate), and compare fee structures across platforms.

What is the pattern day trader rule?

US regulation requiring $25,000 minimum account balance to make 4+ day trades within 5 business days. Applies to margin accounts only. Cash accounts and non-US brokers have different rules.

How do maker and taker fees work?

Maker orders add liquidity to the order book (limit orders) with lower fees (0.1-0.25%). Taker orders remove liquidity (market orders) with higher fees (0.2-0.5%). Using limit orders saves money.

Should I factor in opportunity cost?

Yes, for realistic evaluation. If you tie up $10,000 for a month to make $100 profit (1%), but could earn 0.4% risk-free in a savings account, your true gain is only 0.6% above the baseline.

How do stop-loss orders affect profit calculations?

Stop-losses limit downside but don't affect profit calculations for successful trades. However, plan for worst-case scenarios: if your stop-loss is 5% below entry, factor in potential 5% loss when sizing positions.

What's the difference between realized and unrealized profit?

Realized profit: Actual gain from closed positions (money in your account). Unrealized profit: Paper gains on open positions (could disappear if price reverses). Only realized profits matter for calculations.

How do leverage and margin affect profit calculations?

Leverage multiplies both gains and losses. With 2:1 leverage, a 5% price move = 10% account move. Calculate profit on total position value, but ROI on your actual capital invested (margin). Margin interest reduces net profit.