# How Do I Determine Profit When Bitcoin Rises? [duplicate]

I am new to Bitcoin and would like to know how to calculate the amount of profit made when Bitcoin rises. With stocks a point is equal to \$1 and I am required to pay the full value of the stock so calculating profit when the stock rises is very easy. Right now, 1 Bitcoin is worth \$11059.51 however I am allowed to invest less money for a small piece of it. I can invest \$100, \$500, or any amount less than what Bitcoin is worth. I am confused on how to calculate profit. If Bitcoin rises and to \$20000.00, and I have only invested \$100, how much profit will I make? Is there any easy way to calculate the actual profit of Bitcoin rising when someone invests in a small piece of it rather than buying 1 Bitcoin? Thanks for your help.

• This question has nothing to do with Bitcoin or cryptocurrency. – Pieter Wuille Dec 3 '17 at 7:13

The simplest way to calculate would be:

`averagecost = ((BTC[t0] x USD[t0]) + (BTC[t1] x USD[t1]) + (so on))/total_BTC`

where `t0`,`t1` and so on are different time when you bought.

The above gives you the average cost for all your BTC

Now to know the profit, use the below formula:

`profitloss = (current_BTC_price - averagecost) x total_BTC`

If `profitloss` is negative, then you have a loss.

If `profitloss` is positive, then you have a profit.