Verified Mathematical Model & Formulation
Total Invested = Quantity × Buy Price + Buy Fee Total Proceeds = Quantity × Sell Price - Sell Fee Net Profit = Total Proceeds - Total Invested ROI % = (Net Profit / Total Invested) × 100
Calculates net investment return after factoring in entry and exit platform maker/taker trading fees or brokerage commissions.
Configurable Parameters & Standard Units
- Average Purchase Price ($): (Default: 2500 usd)
- Quantity / Units (Coins or Shares): (Default: 2.5 count)
- Exit / Current Selling Price ($): (Default: 3400 usd)
- Exchange / Brokerage Fee (%): (Default: 0.2 percent)
Standard Worked Example & Practical Verification
Scenario: Buying 4.5 ETH at $2,400 with 0.25% exchange fee, selling at $3,450 with 0.25% fee.
Practical Takeaway: Accounting for exchange entry and exit slippage ensures realistic net portfolio tracking.
Frequently Asked Questions
What is Dollar Cost Averaging (DCA)?
DCA is an investment strategy where you divide the total amount to be invested into periodic purchases of a target asset to reduce the impact of volatility.
How do maker and taker fees differ?
Maker fees apply when your order adds liquidity to the order book (limit order), whereas taker fees apply when your order immediately removes liquidity (market order).