Conservative Stock Trading
Low Risk Position: $1,000 Entry: $100 Exit: $105 Leverage: 1x
Result: +$50 profit (5% ROI)
A typical blue-chip stock trade with no leverage. Safe approach for beginners focusing on steady gains.
P&L ANALYSIS
Profit & Loss Calculator - P&L Analysis Tool
Calculate trading profits, losses, and ROI with our free P&L calculator. Supports leverage, multiple assets, and provides detailed analysis for better trading decisions.
ROI Analysis
Leverage Support
Multi-Asset
Profit & Loss Calculator
Calculate your trading P&L, ROI, and leverage impact
Profit/Loss
$--
-- ROI
Price Change: --%
Notional Exposure: $--
Leverage Used: --:1
🎯 Risk Level
Moderate
How to Use the Profit Loss Calculator
1
Enter Position Size
Input the dollar amount you're investing in the trade. This is your actual capital at risk, not the total position value with leverage.
2
Set Entry Price
Enter the price at which you bought or plan to buy the asset. This is your cost basis for the trade.
3
Enter Exit Price
Input your exit price - where you sold or plan to sell. This can be higher (profit) or lower (loss) than entry.
4
Select Leverage
Choose your leverage multiplier. Higher leverage amplifies both profits and losses proportionally.
Real Trading Examples & Scenarios
Learn from practical examples across different markets and risk levels. Click any example to load it into the calculator above.
💱 Moderate Forex Trading
Medium Risk Position: $1,000 Entry: $1.2000 Exit: $1.2100 Leverage: 10x
Result: +$83.33 profit (8.33% ROI)
EUR/USD trade with moderate leverage. Small price movement amplified by 10x leverage for decent returns.
₿ High Leverage Crypto
High Risk Position: $1,000 Entry: $50,000 Exit: $52,000 Leverage: 20x
Result: +$800 profit (80% ROI)
Bitcoin trade with high leverage. 4% price move becomes 80% return, but equally risky on the downside.
Loss Scenario
High Risk Position: $1,000 Entry: $100 Exit: $95 Leverage: 5x
Result: -$250 loss (-25% ROI)
Shows how leverage amplifies losses. A 5% price drop becomes a 25% loss with 5x leverage.
Understanding Trading Profit & Loss
What is P&L?
Profit and Loss (P&L) is the difference between what you paid for an asset and what you sold it for, multiplied by your position size and leverage. It's the most fundamental metric in trading performance analysis.
Formula: P&L = Position Size × (Exit Price - Entry Price) / Entry Price × Leverage
⚡ How Leverage Works
Leverage allows you to control larger positions with less capital. While it can amplify profits, it equally amplifies losses. A 10x leveraged position means a 1% price move results in a 10% gain or loss.
⚠️ Warning: Higher leverage = Higher risk. Never use leverage you don't understand.
Understanding ROI
Return on Investment (ROI) shows the efficiency of your trade as a percentage. It's calculated as (Profit/Loss ÷ Initial Investment) × 100%. This helps compare trades of different sizes and timeframes.
💡 Tip: Focus on consistent ROI rather than absolute dollar amounts.
Risk Management
Always calculate potential losses before entering trades. Set stop-losses to limit downside risk, and never risk more than you can afford to lose, especially with leveraged positions.
Golden Rules:
- Never risk more than 1-2% per trade
- Always set stop-losses
- Understand leverage before using it
Trading Terms Glossary
Position Size
The dollar amount of capital you're investing in a specific trade.
Entry Price
The price at which you buy or enter a trading position.
Exit Price
The price at which you sell or close your trading position.
Leverage
Using borrowed capital to increase potential returns (and risks).
ROI
Return on Investment - the percentage gain or loss on your capital.
Stop Loss
A predetermined price level to exit a losing trade and limit losses.
Trading P&L FAQs
How do you calculate profit and loss in trading?
Trading P&L is calculated as: (Exit Price - Entry Price) / Entry Price * Position Size * Leverage. For long positions, profit occurs when exit price is greater than entry price. For short positions, profit occurs when exit price is less than entry price.
What is ROI in trading?
ROI (Return on Investment) is the percentage gain or loss relative to your initial investment. It's calculated as: (Profit or Loss / Initial Investment) * 100%. This shows the efficiency of your trade.
How does leverage affect profit and loss?
Leverage multiplies both profits and losses. With 10x leverage, a 1% price move results in a 10% gain or loss on your position. Higher leverage increases potential returns but also increases risk proportionally.
Can I use this calculator for all asset types?
Yes, this P&L calculator works for stocks, forex, commodities, cryptocurrencies, and any tradeable asset. Simply enter your position size, entry/exit prices, and leverage to get accurate calculations.
Profit & Loss Examples
Real trading scenarios showing how P&L calculations work across different outcomes
Profitable Trade
+25% ROI
Asset AAPL Stock
Capital Invested $15,000
Entry Price $150.00
Exit Price $187.50
Leverage 1:1
Profit +$3,750
25% price move × $15,000 capital × 1x leverage = $3,750 profit (25% ROI).
Loss Trade
-15% ROI
Asset EUR/USD
Capital Invested $1,000
Entry Price 1.0850
Exit Price 1.0700
Leverage 10:1
Loss -$138
1.38% price drop × $1,000 capital × 10x leverage = $138 loss (13.8% ROI loss).
Leveraged Trade
10x Leverage
Asset BTC/USD
Capital Invested $2,000
Entry Price $40,000
Exit Price $42,000
Leverage 10:1
Profit +$1,000
5% price move × $2,000 capital × 10x leverage = $1,000 profit (50% ROI).
Profit Loss Calculator FAQ
Essential questions about P&L calculations and trading performance
Need More Help?
Still have questions?
Maximize Your Trading Performance
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