- What is Profit in Trading?
- Why Use a Trading Profit Calculator?
- How Does Our Trading Profit Calculator Work?
- How to Use a Stock Trading Profit Calculator
- How to Use a Forex Trading Profit Calculator
- How to Use a Crypto Trading Profit Calculator
- Other Trading Calculations You Should Know
- How Much Profit is 20 PIPs in Forex?
- How Much Profit is 0.01 Lot Size?
- How to Calculate Take Profit in Trading?
- How to Calculate Profit Factor in Trading?
- How to Calculate Trade Gain?
Before placing a trade, it's essential to define your risk level and set realistic profit targets. Understanding your potential gains or losses in advance helps you plan trades better and manage risk wisely.
Our Trading Profit Calculator allows you to quickly estimate potential profits or losses based on your trade details. Whether you're trading Forex, stocks, commodities, or cryptocurrency in India, this tool helps you make informed decisions and refine your trading strategy.
But how are trading profits calculated? How does it work? Why should you calculate profit and loss? Find all this and more in our guide below.
What is Profit in Trading?
In trading, profit is the difference between the entry and exit price of a trade. Your gain or loss depends on whether you bought or sold the asset and how its price moved.
For a Buy (Long) Position:
Profit = Selling Price – Buying Price
Loss = Buying Price – Selling Price
For a Sell (Short) Position:
Profit = Buying Price – Selling Price
Loss = Selling Price – Buying Price
Stock Trading in India
You buy 100 shares of TCS at ₹3,500 and sell them later at ₹3,600.
Profit: (₹3,600 - ₹3,500) × 100 = ₹10,000
If the price falls to ₹3,450, your loss would be:
Loss: (₹3,500 - ₹3,450) × 100 = ₹5,000
The total profit or loss also depends on factors like brokerage fees, STT, GST, and exchange charges, which should be considered before placing a trade.
Why Use a Trading Profit Calculator?
Most trading platforms display your profit/loss only after closing a position, but a Trading Profit Calculator allows you to estimate outcomes before entering a trade.
Benefits of a Trading Profit Calculator:
- Plan trades effectively by knowing potential profits or losses in advance.
- Adjust risk management strategies based on expected returns.
- Compare different trading scenarios before making a decision.
- Helps intraday and derivatives traders understand leveraged profit calculations.
This tool is especially useful for Forex, F&O, and crypto traders, where market volatility can significantly impact profits.
How Does Our Trading Profit Calculator Work?
Our Trading Profit and Loss Calculator determines how much you can gain or lose based on the opening and closing prices of your trade.
How to Use the Calculator:
To calculate profit, enter the following details:
- Trading instrument – Stock, currency pair, commodity, or cryptocurrency
- Trade type – Buy (long) or Sell (short)
- Trade size – Number of shares, lots, or investment amount
- Entry price – The price at which the position was opened
- Exit price – The price at which the position was closed
Profit Calculation Formula:
Profit = (Trade Size × Entry Price) – (Trade Size × Exit Price)
Good to know
Real trading profits may also be affected by brokerage commissions, swap fees (overnight charges), and spreads (difference between bid and ask prices).
How to Use a Stock Trading Profit Calculator
Stock traders can calculate potential profits or losses before placing an order in the NSE or BSE.
Example – Trading Reliance Shares
You buy 200 shares of Reliance Industries at ₹2,300 per share.
Later, you sell them at ₹2,350 per share.
Profit = (2,350 - 2,300) × 200 = ₹10,000
If the price drops to ₹2,250, your loss would be ₹10,000 instead.
For F&O traders, the same calculation applies but with lot sizes and leverage effects.
How to Use a Forex Trading Profit Calculator
Forex trading involves currency pairs, and profit depends on exchange rate movements.
Key Inputs for Forex Profit Calculation:
- Currency pair (e.g., USD/INR, EUR/USD)
- Lot size – Standard (1,00,000 units), Mini (10,000 units), Micro (1,000 units)
- Trade direction – Buy/Sell
- Leverage – If applicable
USD/INR Trade
You buy 1 Standard Lot (₹1,00,000) of USD/INR at ₹82.00 and sell it at ₹82.20.
Profit = (82.20 - 82.00) × 1,00,000 = ₹20,000
If you use 10x leverage, your initial capital requirement would be only ₹10,000, but profits and losses get magnified.
How to Use a Crypto Trading Profit Calculator
Crypto traders can estimate their gains or losses before buying or selling Bitcoin, Ethereum, or other altcoins.
Example – Bitcoin Trade in India
You buy 1 Bitcoin (BTC) at ₹25,00,000 and sell it later at ₹26,50,000.
Profit = 26,50,000 - 25,00,000 = ₹1,50,000
If using 5x leverage, your profit would be:
₹1,50,000 × 5 = ₹7,50,000
But remember, leverage also increases risk, meaning losses can be amplified.
Other Trading Calculations You Should Know
1. Lot Size Calculator
A Lot Size Calculator helps traders determine the optimal trade size based on their capital and risk tolerance.
For example
If you have ₹1,00,000 capital and want to risk only 2% per trade, your maximum risk per trade should be ₹2,000.
2. Position Size Calculator
A Position Size Calculator helps traders decide how much capital to allocate to a trade based on risk percentage and stop-loss levels.
For example
- You have ₹5,00,000 trading capital.
- You risk 2% per trade = ₹10,000 risk limit.
- Based on your stop-loss level, your lot size should be adjusted accordingly.
By combining the Profit Calculator with Lot Size and Position Size Calculators, traders can manage risk and ensure consistent profitability.
How Much Profit is 20 PIPs in Forex?
The profit from 20 PIPs depends on three factors:
- Currency Pair – Different pairs have different PIP values.
- Lot Size – More units = bigger profit per PIP.
- Account Currency – If trading USD/INR, your profit will be in INR.
Profit Calculation Formula:
Profit = PIP Value × Number of PIPs
Example – Trading USD/INR
You trade 1 Standard Lot (₹1,00,000) on USD/INR.
A 20 PIP movement means:
20 PIPs × ₹10 per PIP = ₹200
For Mini Lots (10,000 units):
20 PIPs × ₹1 per PIP = ₹20
Expert advice
- Before placing a trade, always calculate potential profit and loss.
- Use a Trading Profit Calculator to refine your trading strategy.
- Combine it with a Position Size Calculator for risk management.
Try our free Trading Profit Calculator today and take control of your trades!
How Much Profit is 0.01 Lot Size?
In Forex trading, 0.01 lot size is called a micro lot and equals 1,000 units of the base currency.
The profit per PIP depends on the currency pair:
| Lot Size | Units of Currency | PIP Value (Major Pairs like USD/INR, EUR/USD) |
|---|---|---|
| 1 Standard Lot | 1,00,000 | ₹10 per PIP |
| 1 Mini Lot | 10,000 | ₹1 per PIP |
| 1 Micro Lot (0.01 lot) | 1,000 | ₹0.10 per PIP |
USD/INR Trade with 0.01 Lot Size
- You buy 0.01 lot of USD/INR at ₹82.00 and sell at ₹82.20 (20 PIP movement).
- Profit Calculation:
20PIPs × ₹0.10perPIP = ₹2
- If the price drops instead of rising, the loss would also be ₹2.
How to Calculate Take Profit in Trading?
Take Profit (TP) is the price level at which a trade automatically closes to secure profits.
Take Profit Formula:
Take Profit = Entry Price ± (PIP Target × PIP Value)
- For a Buy Trade (Long Position): Add PIP target to entry price.
- For a Sell Trade (Short Position): Subtract PIP target from entry price.
Setting Take Profit on Nifty 50
- You buy Nifty 50 at ₹19,500 and set a Take Profit of 100 points.
- Take Profit Level:
19,500 + 100 = 19,600
- If the index reaches ₹19,600, your trade automatically closes at a profit.
How to Calculate Profit Factor in Trading?
Profit Factor measures trading performance by comparing total profits to total losses.
Profit Factor Formula:
Profit Factor = Total Gross Profit ÷ Total Gross Loss
Here's an example:
- Total Gross Profit: ₹1,00,000
- Total Gross Loss: ₹50,000
Profit Factor = 1,00,000 ÷ 50,000 = 2.0
Profit Factor Meaning:
- Above 1.5 – Good trading performance.
- Above 2.0 – Strong risk management.
- Below 1.0 – Loss-making strategy.
How to Calculate Trade Gain?
Trade Gain is the percentage increase in capital from a successful trade.
Trade Gain Formula:
Trade Gain(%) = (Profit ÷ Initial Investment) × 100
Stock Trade Gain Calculation
- You invest ₹50,000 in Tata Motors shares.
- You sell at a profit of ₹5,000.
Trade Gain = (5,000 ÷ 50,000) × 100 = 10
This means your trade gained 10% of your initial investment.
