Profit/Loss Calculator

Understanding Profit and Loss

Knowing your potential Profit and Loss (P&L) is fundamental to trading. While many traders focus solely on the distance between their entry and exit points, the true financial outcome of a trade depends on your position size, the instrument's contract specifications, and the costs associated with the trade.

Gross vs. Net P&L

Our calculator distinguishes between two critical metrics:

Gross P&L: The raw profit or loss generated purely by the price movement of the asset multiplied by your position size.
Net P&L: Your true bottom line. This subtracts trading costs (commissions) and overnight financing costs (swaps) from your Gross P&L.

Trading Costs Matter

Many novice traders ignore the impact of fees. A trade might look profitable on the chart, but once broker fees are applied, it could result in a net loss.

Commissions: Usually charged per lot traded. E.g., $7 per standard lot round turn.
Swap Fees: Financing charges applied if you hold a leveraged position open past the daily rollover time (usually 5 PM EST).

It is crucial to remember that this calculator provides the Gross P&L based strictly on price movement. Your Net P&L on a real trading account will be lower because of trading costs:

Spread

The difference between the Bid and Ask price. You start every trade slightly in the negative due to the spread.

Commissions

A fixed fee charged by your broker for opening and closing the position (common on Raw/ECN accounts).

Swap / Rollover

Interest paid or earned for holding a position overnight, depending on the central bank interest rates.

Slippage

During high volatility, your order may be executed at a different price than requested.

Profit & Loss Calculator