How to Calculate Returns and Profit or Loss

Here is how to answer “How much did I earn?” accurately. We cover percentages, amounts, and the asymmetry of loss recovery that often confuses beginners.

Formulas for Returns and Profit or Loss

Return (%) = (Current price − Purchase price) ÷ Purchase price × 100
Profit or loss = (Current price − Purchase price) × Quantity

For example, suppose you buy 100 shares at KRW 10,000 and the price reaches KRW 12,000:

Return = (12,000 − 10,000) ÷ 10,000 × 100 = +20%
Profit or loss = (12,000 − 10,000) × 100 shares = +KRW 200,000

Use the percentage calculator for a quick percentage, or the profit and loss calculator to include quantities and fees.

Net Returns Must Deduct Fees and Taxes

The unrealized profit or loss shown on screen is usually before fees and taxes. Deduct buying and selling fees and taxes to find the money you actually earned. The more frequently you buy and sell, especially in short-term trading, the more accumulated fees eat into returns.

A 50% Gain After a 50% Loss Does Not Break Even

This is one of the most common beginner misunderstandings. A loss and its recovery do not use the same percentage.

KRW 10,000 → −50% → KRW 5,000
KRW 5,000 → +50% → KRW 7,500 (not break-even!)
Returning to break-even (KRW 10,000) requires +100%

Because of this asymmetry in loss recovery, avoiding large losses matters as much as earning large profits.

Key Points

① Return = (Current price − Purchase price) / Purchase price × 100; profit or loss = Price difference × Quantity
② Deduct fees and taxes for net returns
③ A 50% gain after a 50% loss does not break even; recovery requires +100%

Caution

The figures are for illustration and are not recommendations to trade any particular asset. You are responsible for your own investment decisions.

NOONOO TRADING invites you to follow live trading in our free chat.

Start in the bot

📈 OKX trading fee discount for new registrations