Finance & trading
How do you calculate profit and loss on a trade?
P&L and percentage change of a long or short trade.
Quick answer
Long P/L = (exit price − entry price) × quantity. Buy 10 units at €100, sell at €112: (112 − 100) × 10 = €120 profit (+12%). Short P/L reverses the price difference: (entry − exit) × quantity.
Profit / loss
20.00
- Change
- 12 %
How it works
This is gross P/L before commissions, spreads, slippage and taxes. A €120 gain on €1,000 deployed is 12% return on capital at risk — not the same as 12% annualised unless the trade lasted one year.
Frequently asked questions
Long vs short — when to use each?+
Long profits when price rises — standard investing. Short profits when price falls — common in futures, CFDs and some stocks. Shorts have unlimited theoretical loss if price keeps rising.
Should I include fees in P/L?+
Yes for real results. A €120 gross profit minus €20 round-trip fees is €100 net — 10% not 12%. Always subtract broker commission and spread on entry and exit.
P/L in points vs money?+
Futures and forex often quote P/L in points or pips; multiply by contract size or lot size for currency. This calculator works in price units × quantity — enter your actual fill prices.
Average entry with multiple buys?+
Weighted average entry = total cost ÷ total units. Bought 5 at €100 and 5 at €105: average €102.50. Use that as entry price for P/L when you sell the full position.
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