How to Calculate Profit and Loss from Crypto Investments?

Investing in crypto can be exciting — prices go up and down fast, and the potential profits can be huge. But how do you actually know if you’re making money or losing it? Let’s break it down in simple terms.

 

What Is Profit and Loss (P&L)?

Profit is the money you make when the value of your crypto goes up and you sell it.
Loss is the money you lose when the value goes down and you sell at a lower price.

Even if you haven’t sold your crypto yet, you can still calculate your unrealized P&L — that’s how much profit or loss you would have if you sold right now.

Basic Formula

Let’s keep it simple:

Profit or Loss = (Selling Price – Buying Price) × Amount of Crypto

Example:

• You bought 0.5 BTC at $20,000
   

• You sold it later at $25,000
   

Profit = (25,000 - 20,000) × 0.5 = $2,500

Easy, right?

 

What if You Didn’t Sell Yet?

That’s called Unrealized P&L. You can still track it to know how your investment is doing.

Formula:

Unrealized P&L = (Current Price – Buying Price) × Amount of Crypto

Example:

• You bought 1 ETH at $1,800
   

• ETH is now $2,100
   

Unrealized Profit = (2,100 - 1,800) × 1 = $300

But remember — prices change quickly. Unrealized profit can turn into a loss if the market drops.

 

Multiple Purchases? Use Average Buy Price

If you bought crypto in different amounts at different prices, use the average buy price.

Example:

• Bought 0.2 ETH at $1,700
   

• Later bought 0.3 ETH at $1,900
   

Average Price = (0.2×1700 + 0.3×1900) ÷ (0.2 + 0.3) = $1,840

Then use that in the main formula to check your P&L.

 

Don’t Forget Trading Fees

Always include fees in your calculation to get an accurate result.

If you paid $10 in fees when buying and $15 when selling, subtract those from your profit.

Adjusted Profit = Gross Profit - Fees

 

Tips for Tracking Your P&L

• Use a spreadsheet or a crypto portfolio tracker
   

• Log every trade: date, amount, price, fees
   

• Check your unrealized P&L often, but don’t panic over daily swings
   

• On Dex-Trade, you can view your trade history to help with calculations

 

Final Thoughts

Knowing how to calculate profit and loss helps you make better decisions, manage your portfolio, and avoid surprises. Whether you're just starting or already trading daily, it’s a skill every crypto investor needs.

Stay smart, trade safe — and track your P&L like a pro with Dex-Trade.