How to Calculate Profit and Loss in Crypto Futures

A crypto futures position can show a profit while it is open and still leave you with less than you expected when you close it. The difference is often trading fees, funding payments, or an exit price that differs from the price you saw on screen.

To calculate a useful result, start with the price move, then account for the costs of holding and closing the position. The formulas below apply to linear, USDT-margined futures. Coin-margined contracts use different calculations. (mexc.com)

Calculate the profit or loss from the price move

You need three numbers: your average entry price, your exit price, and your position quantity in the underlying asset. For a BTCUSDT position, quantity means BTC—not the USDT you put up as margin.

• Long gross P&L = (exit price − entry price) × quantity. A long gains when the exit price is higher.
• Short gross P&L = (entry price − exit price) × quantity. A short gains when the exit price is lower.

The answer is in USDT. If you have 0.1 BTC of exposure, a 1,000 USDT move in BTC’s price changes your gross P&L by 100 USDT. Reverse the move, and it becomes a 100 USDT gross loss. These formulas match MEXC’s USDT-margined closing-P&L calculations once contract quantity is converted into its underlying-asset amount. (mexc.com)

Check how your exchange displays size before doing the arithmetic. If it shows a number of contracts, multiply that number by the asset amount per contract to get your quantity. Also use your average filled entry price, not merely the price you entered on the order form. If you add to a position, that average can change. (mexc.com)

Subtract trading fees and account for funding

Gross P&L is only the price component. A more complete calculation is:

Net P&L = gross P&L − opening fee − closing fee + funding received − funding paid.

Trading fees are generally calculated on the full value of each fill, not just the margin you deposited. Estimate the opening fee using entry price × quantity × opening fee rate. Estimate the closing fee using exit price × quantity × closing fee rate. A maker order and a taker order can have different rates; a limit order is not automatically a maker order if it executes immediately. Check the rates applicable to your pair, account, and region rather than assuming one advertised rate applies to every trade. (mexc.com)

Perpetual futures can also have funding payments while a position remains open. At a settlement, the payment is based on the funding rate and the position value at that time. With positive funding, longs pay shorts; with negative funding, shorts pay longs. Settlement times can differ by trading pair, so check the pair’s displayed schedule and rate. You do not owe a funding payment simply because you held a position for a particular number of hours; what matters is whether you held it through a relevant settlement. (mexc.com)

Finally, allow for slippage: a stop or market order may fill at a worse price than planned. Use the actual fill prices when reviewing a completed trade.

Worked example: a BTC perpetual long

Suppose you buy 0.1 BTC of BTCUSDT perpetual exposure at 60,000 USDT and close the full position at 61,200 USDT. You use 5× leverage. For this illustration, assume both fills incur a 0.02% taker fee. While the position is open, you pay one funding settlement at a +0.01% rate when its fair-price-based value is 6,050 USDT. These assumed rates are not a quote for your trade.

1. Gross P&L: (61,200 − 60,000) × 0.1 = 120 USDT.
2. Opening fee: 60,000 × 0.1 × 0.02% = 1.20 USDT.
3. Closing fee: 61,200 × 0.1 × 0.02% = 1.224 USDT.
4. Funding paid: 6,050 × 0.01% = 0.605 USDT.
5. Net P&L: 120 − 1.20 − 1.224 − 0.605 = 116.971 USDT, or about 116.97 USDT.

The position’s entry value is 6,000 USDT. At 5× leverage, its approximate initial margin is 6,000 ÷ 5 = 1,200 USDT, before any additional margin requirements or costs. Net return relative to that initial margin is about 116.971 ÷ 1,200 = 9.75%. Leverage did not multiply the 120 USDT price-move P&L; it reduced the margin needed for the chosen exposure, making the gain a larger percentage of that margin. It would do the same to a loss. MEXC describes ROI as P&L divided by initial margin. (mexc.com)

For a short with the same 0.1 BTC quantity, an entry at 60,000 and exit at 58,800 would also produce 120 USDT gross P&L. You would still need to apply that short trade’s own fill fees and funding payments or receipts to find its net result.

Read open P&L without mistaking it for a final result

An unrealized P&L figure estimates the price component of a position that is still open. On MEXC, that calculation uses the fair price rather than the last traded price. The amount you ultimately realize depends on your closing fill, fees, and funding, so the figure on an open position is not a guaranteed payout. (mexc.com)

Before placing a trade, run the same calculation at your planned stop price. In the long example, a fill at 58,800 would mean (58,800 − 60,000) × 0.1 = −120 USDT gross, before fees, any funding, and possible slippage. Comparing that potential loss with your account balance is more useful than choosing leverage based on an attractive ROI percentage. The position size calculator can help you work backward from a planned stop and risk amount.

Risk reminder: Futures losses can grow quickly with leverage, and a stop price does not guarantee an exact exit price.