How to calculate profit and loss (PnL) on Binance Futures?

Unrealized PnL shows profit/loss on open positions based on current market price, while realized PnL is the actual gain or loss locked in when you close a position.

Jul 27, 2025 at 04:56 am

Understanding Unrealized and Realized PnL

When trading on Binance Futures, it's essential to distinguish between unrealized PnL and realized PnL. Unrealized PnL reflects the profit or loss of an open position based on the current market price versus your entry price. It changes in real time as the market moves. Realized PnL, on the other hand, is locked in when you close a position—it’s the actual gain or loss you receive in your wallet.

• Unrealized PnL = (Current Mark Price - Entry Price) × Position Size × Direction
• Realized PnL = (Exit Price - Entry Price) × Closed Position Size × Direction
  Direction is +1 for long positions and -1 for short positions. Binance automatically calculates these values in your Futures account dashboard under the "Positions" tab.
  

  Calculating PnL for USDT-Margined Contracts

  
  For USDT-margined futures (like BTCUSDT), the PnL is denominated in USDT. Suppose you open a long position of 0.5 BTC at $30,000 per BTC. If the price rises to $32,000:
• Unrealized PnL = ($32,000 - $30,000) × 0.5 = $1,000
  If you close the entire position at $32,000:
• Realized PnL = ($32,000 - $30,000) × 0.5 = $1,000
  This value appears in your wallet immediately after the trade closes. Fees (taker or maker) are subtracted from this amount automatically by Binance.
  

  Calculating PnL for Coin-Margined Contracts

  
  Coin-margined contracts (like BTCUSD perpetual) express PnL in the base asset—in this case, BTC. The formula uses the inverse:
• PnL (in BTC) = Position Size × (1 / Entry Price - 1 / Exit Price)
  For example, if you go long 10,000 USD worth of BTC at $30,000 and exit at $35,000:
• Position Size = 10,000 / 30,000 = 0.3333 BTC
• Realized PnL = 0.3333 × (1/30,000 - 1/35,000) = 0.3333 × (0.00003333 - 0.00002857) ≈ 0.0000159 BTC
  This small amount is added to your BTC balance once the position is closed.
  

  How Binance Displays PnL in the Interface

  
  Log into your Binance Futures account. Navigate to the "Positions" section:
• Unrealized PnL appears next to each open position in real time
• Realized PnL is visible in the "Order History" or "Trade History" tab after closing a position
• You can switch between USDT and coin-margined views using the toggle in the top-right corner
• Hover over the PnL percentage to see exact values. Binance uses mark price, not last traded price, to prevent manipulation-based PnL spikes.
  

  Step-by-Step: Manual Calculation for a Partial Close

  
  If you close only part of a position, calculate PnL for the closed portion separately:
• Open long: 1 BTC at $30,000
• Close 0.3 BTC at $33,000
• Remaining position: 0.7 BTC still open
• Realized PnL = (33,000 - 30,000) × 0.3 = $900
• Unrealized PnL on remaining 0.7 BTC = (Current Price - 30,000) × 0.7
  This partial close logic applies to both USDT-margined and coin-margined contracts. Always verify the closed quantity in the trade history to avoid miscalculations.
  

  Fees and Their Impact on Net PnL

  
  Binance charges fees on every trade—taker fees (when you remove liquidity) and maker fees (when you add liquidity). These are deducted from your realized PnL:

• For a $1,000 profit with a 0.04% taker fee on a $15,000 trade:

  • Fee = $15,000 × 0.0004 = $6
  • Net PnL = $1,000 - $6 = $994
    Fees are shown in the "Fee" column of your trade history. Binance displays gross PnL first, then subtracts fees to show net PnL in your wallet balance.
    

    Frequently Asked Questions

    Q: Why does my unrealized PnL show a loss even if the price hasn’t moved much?
    
    A: Binance uses the mark price, which is derived from an index of multiple exchanges to prevent price manipulation. If the index price differs from the last traded price on Binance, your unrealized PnL may reflect that difference.

    Q: Can I see PnL for a specific time period, like the last 24 hours?
    
    A: Yes. Go to "Wallet" > "Futures Account" > "Transaction History". Set the date filter to your desired range. Look for "Realized PnL" entries—they include timestamps and exact values.

    Q: Does leverage affect how PnL is calculated?
    
    A: Leverage does not change the PnL formula—it only affects position size relative to your margin. A 10x leverage means you control 10x the position with the same margin, but the PnL per unit remains the same.

    Q: What happens to PnL if my position is liquidated?
    
    A: If liquidated, your position is closed at the liquidation price. Binance calculates realized PnL using that price. Any remaining margin after covering losses and fees stays in your wallet; if losses exceed margin, insurance covers the rest—you won’t owe more.