How to Calculate Trading Profit, Loss and ROI
Calculate gross PnL, round-trip fees, net return and breakeven price for long or short trades.
The concept in plain English
A trading PnL calculator compares entry and exit value, then subtracts opening and closing fees to show net profit or loss. ROI expresses that result as a percentage of the capital committed to the position.
Open Profit/Loss & ROI CalculatorUse one return denominator consistently
A $100 profit on $1,000 of exposure is a different measure from the same profit on a $200 margin deposit. Both can be calculated, but mixing them makes trade comparisons misleading. This tool uses entry notional. Include the actual executed prices rather than chart prices when reviewing a completed trade. Add funding, borrow charges and other costs from the account statement before treating the estimate as a complete record.
A profitable trade after both fees
Buy 10 units at $100 and sell at $110. The fee is 0.1% on each transaction.
Gross profit = ($110 − $100) × 10 = $100. Fees = ($1,000 + $1,100) × 0.1% = $2.10.
Net profit is $97.90. ROI on the $1,000 entry exposure is 9.79%.
ROI uses entry exposure, not the smaller margin deposit for a leveraged trade. Funding and borrowing costs are separate.
Calculation method
Long gross PnL = (exit − entry) × quantity. Short gross PnL reverses the price difference. Net PnL subtracts both transaction fees; ROI divides net PnL by entry exposure.
| Input | Purpose |
|---|---|
| Direction | Selects long or short PnL logic. |
| Entry and exit | Defines the price change captured. |
| Quantity | Scales the position outcome. |
| Trading fee | Estimates round-trip execution cost. |
Step-by-step workflow
- Select long or short and enter both trade prices.
- Add quantity and the fee rate charged at entry and exit.
- Compare gross PnL, net PnL, ROI and breakeven before recording the trade.
Practical benefits
- Separates gross performance from fee-adjusted results.
- Supports long and short trade review.
- Provides a comparable percentage return.
Questions about Profit/Loss & ROI Calculator
What is the difference between PnL and ROI?
PnL is the currency amount gained or lost. ROI divides net PnL by the capital used so trades of different sizes can be compared.
Why is net PnL lower than gross PnL?
Net PnL subtracts transaction costs such as entry and exit fees. Other real costs may reduce it further.
Can the calculator handle short trades?
Yes. For a short, profit occurs when exit price is below entry price, before fees and other borrowing costs.
Examples are hypothetical and exclude costs unless stated. This is educational material, not individualized investment or tax advice. Read our methodology and risk disclosure.