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 to Use the Trade Profit Calculator

Calculating your trade profit is straightforward:

1. Select Trade Type: Choose stocks, crypto, forex, or commodities
2. Enter Buy Price: Input the price per unit at purchase
3. Enter Sell Price: Input the price per unit at sale (or target price)
4. Specify Quantity: Enter number of shares, coins, or contracts
5. Add Buying Fees: Include commission, exchange fees, or spread
6. Add Selling Fees: Include exit fees and commissions
7. Include Other Costs (Optional): Add taxes, slippage, or other expenses
8. Calculate: Click to see your profit/loss breakdown
9. View Results: See gross profit, net profit, ROI percentage, and break-even price

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

Example:

• Buy: 100 shares at $50 = $5,000
• Sell: 100 shares at $55 = $5,500
• Gross Profit: $500
• Fees: $20 (buy) + $20 (sell) = $40
• Net Profit: $460

Return on Investment (ROI)

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

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

Example:

• Investment: $5,000
• Net Profit: $460
• ROI: ($460 ÷ $5,000) × 100 = 9.2%

Break-Even Price

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

Formula: (Total Cost + Total Fees) ÷ Quantity

Example:

• Buy: 100 shares at $50 = $5,000
• Buying Fee: $20
• Total Cost: $5,020
• Selling Fee: $20
• Break-Even: ($5,020 + $20) ÷ 100 = $50.40

You must sell above $50.40 to profit.

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

Forex Trading Fees

Spread

• Primary Cost: Difference between bid and ask price
• Measured in Pips: EUR/USD spread might be 0.5-2 pips
• Varies by Broker: More competitive brokers = tighter spreads

Commission (Some Brokers)

• Per Lot: $3-$10 per standard lot (100,000 units)
• Zero Commission: Some brokers charge wider spreads instead

Swap/Overnight Fees

• Holding Cost: Fee for keeping positions open overnight
• Positive or Negative: Depends on currency pair and position direction
• Compounds: Daily charges for multi-day positions

Options Trading Fees

Per Contract Fee

• Typical Range: $0.50-$1.00 per contract
• Both Sides: Opening and closing positions
• Example: 10 contracts = $5-$10 per side

Assignment/Exercise Fees

• Flat Fee: $5-$20 when option is exercised
• Avoid if Unwanted: Close positions before expiration

Trading Profit Calculation Examples

Example 1: Stock Day Trade

Trade Details:

• Buy: 500 shares at $25.00 = $12,500
• Sell: 500 shares at $26.50 = $13,250
• Buying Commission: $0 (commission-free broker)
• Selling Commission: $0
• SEC Fee: ($13,250 × 0.0000278) = $0.37
• TAF Fee: (500 × $0.000166) = $0.08

Calculation:

• Gross Profit: $13,250 - $12,500 = $750
• Total Fees: $0.45
• Net Profit: $749.55
• ROI: ($749.55 ÷ $12,500) × 100 = 6.0%
• Break-Even Price: $25.00 (essentially no fees on buy)

Example 2: Cryptocurrency Swing Trade

Trade Details:

• Buy: 2 ETH at $2,000 = $4,000
• Sell: 2 ETH at $2,300 = $4,600
• Buying Fee (0.25%): $10
• Selling Fee (0.25%): $11.50
• Spread Loss: ~$20 (1% total on entry/exit)

Calculation:

• Gross Profit: $4,600 - $4,000 = $600
• Total Fees: $41.50
• Net Profit: $558.50
• ROI: ($558.50 ÷ $4,010) × 100 = 13.9%
• Break-Even Price: $2,030 (need 1.5% gain just to break even)

Example 3: Forex Position Trade

Trade Details:

• Position: 1 standard lot EUR/USD (100,000 units)
• Entry: 1.1000
• Exit: 1.1100 (100 pip gain)
• Spread: 1.5 pips at entry = $15
• Commission: $7 per side = $14 total
• Overnight Swap: -$3 per night × 5 nights = -$15

Calculation:

• Gross Profit: 100 pips × $10/pip = $1,000
• Total Costs: $15 + $14 + $15 = $44
• Net Profit: $956
• Investment: ~$2,000 (5% margin)
• ROI: ($956 ÷ $2,000) × 100 = 47.8%

Example 4: Options Trade

Trade Details:

• Buy: 5 call option contracts at $2.00 premium = $1,000
• Sell: 5 contracts at $3.50 premium = $1,750
• Opening Fee: 5 × $0.65 = $3.25
• Closing Fee: 5 × $0.65 = $3.25

Calculation:

• Gross Profit: $1,750 - $1,000 = $750
• Total Fees: $6.50
• Net Profit: $743.50
• ROI: ($743.50 ÷ $1,000) × 100 = 74.4%

Frequently Asked Questions (FAQs)

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.

Trading Fee Comparison by Platform

Stock Trading Platforms

Robinhood

• Commission: $0
• Account Minimum: $0
• Spread Markup: Yes (PFOF model)
• Best For: Beginners, small accounts

TD Ameritrade/Charles Schwab

• Commission: $0 stocks, $0.65/contract options
• Account Minimum: $0
• Tools: Excellent (thinkorswim)
• Best For: Active traders, technical analysis

Fidelity

• Commission: $0 stocks, $0.65/contract options
• Account Minimum: $0
• Research: Exceptional
• Best For: Long-term investors, research-focused

Interactive Brokers

• Commission: $0 stocks with IBKR Lite, $0.005/share with IBKR Pro
• Account Minimum: $0
• Best For: Professional traders, international markets

Cryptocurrency Exchanges

Coinbase

• Trading Fee: 0.40-0.60% (volume-based)
• Spread: ~0.5%
• Best For: Beginners (user-friendly)
• Note: High fees for small trades

Binance

• Trading Fee: 0.10% maker/taker (lower with BNB)
• Best For: Active traders, low fees
• Note: US restrictions apply

Kraken

• Trading Fee: 0.16% maker, 0.26% taker
• Withdrawal Fees: Vary by coin
• Best For: Security-focused traders

Coinbase Pro

• Trading Fee: 0.40% taker, 0% maker (for >$100k volume)
• Lower than regular Coinbase
• Best For: Cost-conscious traders

Forex Brokers

OANDA

• Spread: Competitive (EUR/USD ~0.8 pips)
• Commission: $0 (spread-based)
• Best For: Beginners, transparent pricing

Interactive Brokers

• Spread: Tight institutional spreads
• Commission: $2-$10 per 100k traded
• Best For: Professional traders, lowest overall cost

Forex.com

• Spread: Variable (EUR/USD 0.8-2.0 pips)
• Commission: $0 (spread-based)
• Best For: US-based traders (regulated)

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

Tax Implications for Traders

Short-Term vs. Long-Term Capital Gains

Short-Term (held ≤ 1 year)

• Taxed as ordinary income
• Rates: 10-37% depending on bracket
• Most day traders pay short-term rates

Long-Term (held > 1 year)

• Preferential tax rates
• Rates: 0%, 15%, or 20%
• Investors benefit from lower rates

Wash Sale Rule

Can't claim a loss if you buy the same/substantially identical security within 30 days before or after the sale.

Example:

• Sell AAPL at a loss on Dec 15
• Buy AAPL again on Jan 5
• Loss deferred (can't claim this year)

How to Avoid: Wait 31 days before repurchasing, or buy similar (not identical) security

Trader Tax Status (TTS)

Active traders may qualify for special tax treatment:

• Deduct trading expenses
• Avoid wash sale rule (with mark-to-market election)
• Deduct home office
• Requirements: Trade regularly (4+ hours daily), seek short-term profits

Cryptocurrency Taxes

• Every crypto trade is taxable event (crypto-to-crypto included)
• Must track cost basis for each purchase
• Trading crypto for goods/services = taxable
• Mining and staking income = ordinary income
• Like-kind exchange (1031) no longer applies to crypto

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

Advanced Profit Calculations

Compound Returns

Reinvesting profits creates exponential growth.

Example:

• Starting Capital: $10,000
• Monthly Return: 3%
• After 1 Year: $10,000 × (1.03)^12 = $14,258
• Simple: Would be only $13,600

Win Rate Required for Profitability

Formula: Win Rate > [1 ÷ (1 + Risk-Reward Ratio)]

Examples:

• 1:1 Risk-Reward needs >50% win rate
• 1:2 Risk-Reward needs >33% win rate
• 1:3 Risk-Reward needs >25% win rate

Expected Value (EV)

Formula: (Win Rate × Avg Win) - (Loss Rate × Avg Loss)

Example:

• 45% win rate, avg win $300
• 55% loss rate, avg loss $150
• EV = (0.45 × $300) - (0.55 × $150) = $135 - $82.50 = $52.50 per trade
• Positive EV = profitable system

Maximum Drawdown

Largest peak-to-trough decline in account value.

Example:

• Peak: $15,000
• Trough: $10,500
• Drawdown: ($15,000 - $10,500) ÷ $15,000 = 30%
• Need 42.9% gain to recover (asymmetric!)