Crypto futures PnL starts with a simple price difference, but a useful trading result must distinguish gross PnL from net PnL. Position size determines the dollar gain or loss; leverage changes the margin required and therefore the return on equity.
PnL is the money the trade gained or lost
Start with the price move and the amount of crypto in the position. That gives gross PnL. Then subtract trading fees and funding costs to get the result that matters: net PnL.
- Long positions profit when the exit price is higher than the entry price.
- Short positions profit when the exit price is lower than the entry price.
- Leverage changes the margin required; it does not change PnL when position size is already fixed.
- PnL
- Profit and loss—the amount the trade gained or lost.
- Notional
- The full market value of the position, including the part controlled through leverage.
- ROE
- PnL shown as a percentage of the margin supporting the trade.
The linear perpetual PnL formulas
USDT- and USDC-margined linear contracts settle PnL in the quote currency. First find the asset quantity controlled by the position, then multiply it by the price move in the appropriate direction.
A long benefits when exit price is above entry. A short benefits when exit price is below entry. If the move is unfavorable, the same formula produces a negative number.
Position notional ÷ Entry priceQuantity × (Exit price − Entry price)Quantity × (Entry price − Exit price)Margin, leverage, notional, and quantity
These terms are related but not interchangeable. Margin is the collateral allocated to open the position. Leverage describes how much notional that margin controls. Notional is the dollar value of the exposure. Quantity is the amount of the underlying asset represented by the position.
Margin × LeveragePosition notional ÷ LeveragePosition notional ÷ Entry price| Input | What it controls | Common mistake |
|---|---|---|
| Margin | Collateral committed | Treating it as full position size |
| Leverage | Required initial margin | Assuming it changes fixed-notional PnL |
| Notional | Actual market exposure | Ignoring fee calculation on notional |
| Quantity | Asset amount | Mixing coin and USDT units |
From gross PnL to net PnL
Gross PnL only measures the price move. Net PnL also accounts for the cost of opening and closing the position and the funding transferred during the holding period.
Entry and exit fees should be calculated separately because the order types and notionals can differ. Funding may be a cost or a credit depending on the position side and the sign of each settlement rate.
Entry notional × entry fee rateExit price × quantity × exit fee rateGross PnL − entry fee − exit fee + funding received − funding paidWorked BTC long example
Suppose $1,000 of margin controls a $5,000 BTC long at 5x leverage. Entry is $65,000 and exit is $67,500. The entry order is maker at 0.02%, the exit order is taker at 0.05%, and one 0.01% funding payment is paid by the long.
$1,000 margin · 5x BTC long
The position gains about $192.31 before costs. Entry and exit fees total about $3.60 and funding costs $0.50, leaving about $188.21 in estimated net PnL.
Why leverage changes ROE but not fixed-notional PnL
For a fixed $5,000 notional position, the dollar PnL from a given price move is the same whether the trader assigns $1,000 or $500 of margin. What changes is the capital supporting the trade.
Because ROE divides PnL by margin, using less margin makes the percentage result larger in both directions. It also reduces the buffer before maintenance requirements are reached.
Gross PnL ÷ Position notional × 100Net PnL ÷ Margin used × 100Unrealized, realized, and closed PnL
Unrealized PnL is an estimate for an open position and may be displayed from last price or mark price. Realized PnL records gains, losses, and costs recognized while a position is still partly open. Closed PnL is the final result associated with the closed quantity.
Exchange labels vary, so check whether the number includes open fees, close fees, and funding. A position can display positive unrealized PnL and still close for a net loss when costs are larger than the price gain.
Crypto PnL Calculator
Calculate gross and net futures PnL using margin, notional, or quantity, with separate fees, funding, ROE, and break-even.
Frequently asked questions
Does 10x leverage multiply profit by ten?
It lets the same margin control roughly ten times the notional. For an already fixed notional, changing leverage does not change dollar PnL; it changes required margin and ROE.
Should fees be calculated from margin or notional?
Trading fees are generally based on filled position value or notional, not the smaller amount of margin assigned to the position.
Why is exchange PnL different from my calculation?
Possible causes include mark versus last price, partial fills, average entry changes, exact fee tier, funding settlements, rebates, contract precision, and rounding.
Can net PnL be negative when gross PnL is positive?
Yes. If entry fees, exit fees, funding, and slippage exceed the favorable price move, the final net result is negative.
Exchange mechanics and rates can change. These primary references were used to verify the concepts on this page.
Educational information only. Contract rules and account calculations vary by exchange; verify them before trading.