How this calculation works
Use one long spot purchase and a sale of the same quantity. Entry costs increase the starting outlay, while the exit fee reduces proceeds. Break-even solves for an exit unit price that exactly covers that outlay under the entered exit-fee rate.
Profit = quantity × exit price × (1 − exit fee) − [quantity × entry price × (1 + entry fee) + upfront cost]A worked example
Buying 2 tokens at 1,000 with a 0.1% entry fee and 5 extra upfront cost creates outlay 2,007. Selling at 1,200 with a 0.1% exit fee gives 2,397.60 net proceeds and 390.60 profit.
Good to know
A scenario from entered prices, quantities and assumptions. No live prices, wallet connection, trade execution, return forecast or tax determination. Decimal arithmetic is used; displayed values are rounded. Examples are arithmetic demonstrations, not market rates or recommendations.
Reference: Investor.gov: how fees affect investment returns (opens in a new tab) ↗
A price increase is different from net profit
A trade’s gross price change does not include its costs. Buying two tokens at 1,000 creates a gross purchase amount of 2,000. With a 0.1% entry fee and 5 additional upfront cost, the modeled cash outlay is 2,007.
Selling those two tokens at 1,200 creates gross proceeds of 2,400, but a 0.1% exit fee reduces the amount retained to 2,397.60. Comparing that with the full outlay gives net profit of 390.60.
The return on investment denominator here is the total upfront outlay. All additional fixed cost is treated as paid upfront. If a real cost occurs later or is charged in tokens, that different cash-flow convention needs its own accounting.
Use one asset quantity and compatible price units
The model buys and fully sells the same quantity. It does not combine partial sales, earlier holdings or later purchases. For chronological transactions, the moving-average trade position calculator separates realized change from the remaining book position.
Break-even exit price solves for the price whose net sale proceeds cover upfront outlay. An exit fee of 100% leaves no proceeds at any finite price, so that boundary is reported as having no finite break-even rather than divided by zero.
Use prices and fixed costs in the same selected fiat currency. The currency control changes display formatting only. Inputs are entered scenarios, not fetched prices, and the result does not establish tax treatment, execution quality or a future return.
A few questions, answered
Is the quoted price change the same as the return shown?
No. The return includes the entered costs and uses total upfront outlay. A percentage price change compares unit prices alone.
Does the extra cost occur on entry or exit?
It is treated as an upfront cost in this model. That convention affects the return denominator.
Can I model leverage or a short position?
No. This is one unleveraged long spot purchase and a complete sale of the same quantity.