How Do You Calculate ROI on Bitcoin?
ROI is the percentage that tells you how much you gained relative to what you spent. It is not a prediction and not investment advice.
TL;DR
Shortest answer
What Is Bitcoin ROI?
ROI (%) measures return relative to your cost basis. Profit ($) measures the dollar amount gained or lost. ROI helps compare investments across different sizes and assets. Bitcoin ROI is conceptually similar to stock ROI, but volatility is higher and fee structure differs (trading fees, slippage, funding, etc.).
| Metric | What it tells you | What it doesn’t |
|---|---|---|
| Profit ($) | You gained/lost dollars | Not comparable across different sizes |
| ROI (%) | Return relative to cost | Doesn’t show volatility/risk |
| CAGR (optional) | Annualized growth | Can hide drawdowns |
The Simple Bitcoin ROI Formula
ROI (basic)
Simple one-shot purchase
ROI (real-world)
Cost basis with fees
Step-by-Step Example (If You Invest $1,000)
- BTC amount bought = $1,000 ÷ $X
- Final proceeds = BTC amount × $Y
- Profit = Final proceeds − Total cost (including fees)
- ROI% = Profit ÷ Total cost × 100
Example Box
Formula + final answer (variables)
How Fees Change Bitcoin ROI (Most People Ignore This)
What fees to include
Spot default; funding applies to derivatives
Fees Example (same $1,000 scenario)
Comparison table
| Scenario | Final Value | Profit | ROI% |
|---|---|---|---|
| No fees | … | … | … |
| 0.1% buy + 0.1% sell | … | … | … |
| 0.6% buy + 0.6% sell | … | … | … |
ROI for DCA (Multiple Buys)
Total cost basis approach
Aggregate purchases + fees
When ROI looks ‘lower’ but risk is lower
DCA vs lump sum
What ROI Doesn’t Tell You (Risk & Context)
- ROI does not equal “future will repeat”.
- ROI does not reflect volatility: interim drawdowns can be −70%.
- ROI does not reflect opportunity cost.
- ROI is not suitable for everyone.
Risk Reality
Volatility reminder
Why a Bitcoin ROI Calculator Matters
Manual calculations often miss fees and multiple buys. A calculator lets you compare different periods (1Y/3Y/5Y), DCA vs lump sum, and break results into components like worst drawdown and best/worst windows.
Data Sources & Assumptions
- Historical prices from major exchanges and trusted aggregators.
- Live prices sourced from reliable market data endpoints.
- Fee assumptions use common maker/taker ranges; customize in tools.
- Spot market default; derivatives funding only when explicitly stated.