FINANCEVELIX / Investment calculators
Leverage and margin calculator
FINANCEVELIX / CRYPTO
Crypto tools
See how leverage turns your margin into a larger position and how a price move changes your return on margin. Enter margin, leverage, entry and exit prices, and the fee rate your exchange charges per side.
Leverage & margin
Use the same currency for every price, fee and amount. Changing this label does not convert values.
FINANCEVELIX / Your calculation
Your calculation
Enter your assumptions, then select Calculate.
FINANCEVELIX / Method
How leverage, margin and ROE are calculated
Leverage multiplies your margin into the position size: position value = margin × leverage, and quantity = position value ÷ entry price. Profit or loss depends on the full position, not on the margin. For a long it is quantity × (exit price − entry price); for a short the sign is reversed.
Trading fees are charged on the position value at each side, so fees grow with leverage as well. Net profit or loss = gross result − entry fee − exit fee, and return on margin (ROE) = net profit or loss ÷ margin × 100.
Example: 1,000 USDT of margin at 10× opens a 10,000 USDT position. A 10% price rise with a 0.05% fee per side earns 989.50 USDT, an ROE of 98.95%. A 10% fall loses 1,009.50 USDT, more than the margin.
A price move of 100 ÷ leverage percent against the position uses up the margin before fees. That is why higher leverage leaves less room for normal price swings.
Frequently asked questions
What is the difference between leverage and margin?
Margin is the collateral you put up, and leverage is the ratio between the position value and that margin. With 1,000 USDT of margin, 5× leverage opens a 5,000 USDT position and 20× opens a 20,000 USDT position. The margin at risk is the same, but the adverse move that uses it up shrinks from 20% to 5%.
Why do fees matter more with leverage?
Fees are a percentage of the full position value, not of your margin. At 20× leverage, a 0.05% fee on entry and again on exit costs about 2% of the margin before any price move.
Is ROE the same as the return on my account?
No. ROE measures profit or loss against the margin of one position. Your account return also depends on balances not used as margin, other positions, funding payments and fees. A 50% ROE on a position that uses 10% of the account is a 5% gain on the account before costs.