How to Calculate Crypto PnL and ROI (Realized vs Unrealized)
PnL — profit and loss — is the number that actually matters, yet exchanges display it in ways that flatter leverage and hide costs. Here is how to calculate your real result, the difference between the profit you have locked in and the profit you only think you have, and why a “+200% ROE” can be a modest ROI.
The basic PnL formula
For a long, profit and loss is simply (exit price − entry price) × quantity. For a short it flips: (entry price − exit price) × quantity. Buy 2 ETH at $3,000 and sell at $3,300 and your gross PnL is (3,300 − 3,000) × 2 = $600.
That is gross PnL. Your net PnL subtracts trading fees on both sides and any funding you paid while the position was open — which is where a lot of “winning” trades turn out flat. Run any scenario with the PnL calculator or crypto profit calculator, and model several exits at once with the PnL scenario calculator.
Realized vs unrealized PnL
Unrealized PnL is the paper gain or loss on a position you still hold — it moves with every tick and is not yours until you close. Realized PnL is what you actually locked in when you closed (or partially closed) the position. The classic mistake is spending, sizing up, or feeling rich off unrealized profit that then evaporates.
Only realized PnL pays your bills or compounds into the next trade. Separate the two cleanly with the realized vs unrealized PnL calculator, and decide what to lock in with the take-profit calculator and take-profit ladder.
ROE vs ROI: why leverage inflates the percentage
Exchanges love to show ROE — return on equity (your margin). At 10x leverage, a 5% move in price is a 50% ROE, and the screenshot looks incredible. But your ROI — return on the money you actually put up, and the risk you took — tells a different story once you account for the fact that the same leverage turns a 5% move against you into a 50% loss or a liquidation.
Judge trades on real capital and real risk, not headline ROE. The ROI calculator and real futures profit calculator (which nets out fees and funding) show what you actually made. For how leverage magnifies both directions, see how leverage works.
What shrinks your real PnL
Between gross PnL and the number that hits your balance sit three leaks: trading fees (entry + exit), funding on perps held across funding times, and slippage if you used market orders in thin books. On a small scalp these can erase the entire edge — see how trading fees work and the fee drag calculator.
The other silent killer is asymmetry: after a loss you need a larger percentage gain just to get back to flat (down 50% requires +100% to recover). Plan around it with the drawdown recovery calculator and know your break-even win rate before you rely on a strategy.
Turning PnL into a plan
- Always think in net, not gross. Subtract fees and funding before you call a trade a winner.
- Bank realized PnL on a plan. Scale out with a ladder instead of hoping for the exact top — see the take-profit ladder.
- Don't confuse ROE with ROI. A high ROE on heavy leverage is a high-risk bet, not free skill.
- Size so one loss is survivable — use position sizing and the position size calculator so your PnL math never includes “blew up the account.”
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Frequently asked questions
How do I calculate PnL on a crypto trade?
For a long, PnL = (exit price − entry price) × quantity; for a short, PnL = (entry price − exit price) × quantity. That gives gross PnL. Subtract entry and exit fees and any funding paid to get your net PnL, which is what actually reaches your balance.
What is the difference between realized and unrealized PnL?
Unrealized PnL is the paper gain or loss on a position you still hold; it changes with price and is not locked in. Realized PnL is the profit or loss you actually captured when you closed the position. Only realized PnL is truly yours to spend or reinvest.
What is the difference between ROE and ROI in futures?
ROE (return on equity) measures return against the margin you posted, so leverage inflates it — a 5% price move at 10x shows as 50% ROE. ROI measures return against the capital and risk you actually took. Exchanges usually display the flattering ROE; judge trades on ROI and real risk.
Why do fees and funding matter for PnL?
Gross PnL ignores costs. Trading fees are charged on both entry and exit, funding is exchanged periodically on perpetual positions, and slippage adds hidden cost on market orders. On small or frequent trades these can erase the entire gross profit, so always calculate net PnL.
Educational only — not financial advice.