- What Is Profit in Trading?
- Why Use a Trading Profit Calculator?
- How Does Our Trading Profit Calculator Work?
- How to Use a Forex Trading Profit Calculator?
- How to Use a Crypto Trading Profit Calculator?
- Other Essential Trading Calculators
- Key Considerations for Australian Traders
Before entering a trade, it's essential to define your risk level and set a realistic profit target. Our trading profit calculator helps you estimate potential profits or losses instantly, ensuring smarter trading decisions.
What you'll learn in this guide
- How a trading profit calculator works
- Factors that impact profit and loss calculations
- How to use the calculator for Forex, stocks, and crypto trading
- Risk management tips to maximise profits
What Is Profit in Trading?
In trading, profit is the gain or loss from a position based on price movements. Whether you buy (long) or sell (short), your profit depends on how the asset's price changes over time.
How Profit & Loss Work
For a long (buy) position:
Profit = Selling price − Buying price
Loss = Buying price − Selling price
For a short (sell) position:
Profit = Buying price − Selling price
Loss = Selling price − Buying price
For example
You buy 1 lot of AUD/USD at 0.6500 and later sell at 0.6550 – You made 50 PIPs of profit.
You short 1 lot of GBP/AUD at 1.8500 and later buy back at 1.8550 – You lost 50 PIPs.
Your total profit or loss depends on trade size (lot size) and leverage.
Why Use a Trading Profit Calculator?
Most Australian trading platforms (such as CommSec, CMC Markets, and IG Markets) automatically display your profit/loss when a position is closed. However, using a profit calculator before entering a trade allows you to:
- Plan trades more effectively by knowing potential profits/losses upfront
- Adjust your risk management strategy based on expected returns
- Compare different trading scenarios before making a decision
A trading profit calculator (also known as a trade return calculator) is particularly useful for Forex and cryptocurrency traders, where market volatility can impact profits quickly.
How Does Our Trading Profit Calculator Work?
Our trading profit and loss calculator helps you determine how much you can gain or lose based on the opening and closing prices of a trade.
To use the trading profit calculator, enter:
- Trading instrument – Forex pair, stock, commodity, or cryptocurrency
- Deposit currency – The currency of your trading account (AUD, USD, EUR, etc.)
- Trade direction – Buy (long) or Sell (short)
- Lot size or investment amount – Position size (e.g., standard, mini, or micro lots)
- Opening price – The price at which the position was opened
- Closing price – The price at which the position is closed (or stop-loss/take-profit level)
Profit Calculation Formula:
Profit = (Lot size × Opening price) − (Lot size × Closing price)
Our calculator provides an instant estimate, but real trading profits may also be affected by:
- Broker commissions
- Overnight swap fees
- Spreads (difference between buy/sell price)
How to Use a Forex Trading Profit Calculator?
For Forex traders, a profit calculator helps determine how much you can earn or lose based on exchange rate movements.
Key Inputs for Forex Profit Calculation:
- Currency pair (e.g., AUD/USD, EUR/AUD, GBP/AUD)
- Account currency (AUD, USD, EUR, etc.)
- Trade size (standard lots, mini lots, or micro lots)
- Opening and closing price
- Trade direction (Buy/Sell)
For example
You buy 1 standard lot (100,000 units) of AUD/USD at 0.6500.
Later, you sell at 0.6550, gaining 50 PIPs.
Profit Calculation:
(0.0001 × 100,000) × 50 = $500 profit
If you use leverage, your actual capital invested is lower, but the profit/loss is amplified.
Pro Tip: Always use a Forex profit calculator before placing a trade to ensure your potential reward justifies the risk.
How to Use a Crypto Trading Profit Calculator?
A crypto profit calculator helps traders estimate profits and losses when buying or selling Bitcoin, Ethereum, and other digital assets.
For example
You buy 1 BTC at $60,000 AUD and later sell at $62,000 AUD.
Your profit is $2,000 AUD.
If you use 5x leverage, your profit is multiplied by 5, making it $10,000 AUD.
A crypto profit calculator like ours lets you test different price scenarios before trading.
Other Essential Trading Calculators
Lot Size Calculator
- Helps determine the optimal position size based on account balance and risk tolerance.
- Prevents overleveraging and helps with money management.
Position Size Calculator
- Helps determine how much capital to allocate per trade based on risk management rules.
For example
You have a $20,000 AUD trading account and want to risk 2% per trade.
Risk per trade = $400 AUD
Your lot size should be adjusted accordingly to limit losses.
Pro Tip: Combining a profit calculator with a position size calculator ensures your trades are profitable yet risk-controlled.
Key Considerations for Australian Traders
- Trading Platforms & Regulations – In Australia, Forex and CFD trading is regulated by ASIC (Australian Securities and Investments Commission). Ensure your broker is ASIC-licensed.
- Leverage Limits – Australian traders face leverage restrictions (e.g., max 30:1 for Forex majors, 2:1 for crypto) to protect retail investors.
- Tax Implications – In Australia, profits from trading are subject to Capital Gains Tax (CGT). Keep track of your trades for tax reporting.
- Market Hours – Forex trading operates 24/5, but stock and crypto markets follow specific hours. Be aware of Sydney market times and global time zone differences.
Whether you trade Forex, stocks, or crypto, knowing how much you can earn (or lose) per trade is essential for long-term success.
To get started, use our free Trading Profit Calculator today and take control of your trades with confidence!
