NFT Investment Return Analyzer
Purchase Details
Sale Details
Current Estimated Value (If Not Sold)
ROI Calculation Summary for
Please enter transaction details on the first tab and click 'Analyze NFT Return'.
Understanding NFT Investment Returns & Fees
Key Components of NFT Transactions:
- Purchase Price: The initial amount paid for the NFT, either in cryptocurrency (e.g., ETH, SOL) or fiat currency.
- Gas Fees: Fees paid to the blockchain network to process transactions (minting, buying, selling, listing). These are highly variable and depend on network congestion and complexity. They are typically paid in the network's native cryptocurrency (e.g., ETH for Ethereum).
- Marketplace Fees: Most NFT marketplaces (like OpenSea, Magic Eden, LooksRare) charge a percentage fee on the sale price (e.g., 2.5% - 5%).
- Creator Royalties: A percentage of secondary sales that goes back to the original creator of the NFT. This is set by the creator/collection and enforced by most marketplaces (e.g., 2.5% - 10%).
- Other Costs: Might include fees for bridging assets between different blockchains, or costs for using specific minting platforms or tools.
- Sale Price: The price at which the NFT is sold.
Calculating ROI:
A simplified ROI is calculated as:
ROI (%) = ((Net Sale Proceeds - Total Acquisition Cost) / Total Acquisition Cost) * 100
- Total Acquisition Cost = Purchase Price + Purchase Gas Fees + Other Purchase Costs.
- Net Sale Proceeds = Sale Price - Sale Gas Fees - Marketplace Fee Amount - Creator Royalty Amount.
Importance of Fiat Conversion:
If your transactions involve cryptocurrencies (e.g., buying in ETH and selling in ETH), the ROI in crypto terms might look different from your ROI in your local fiat currency (e.g., USD, INR, EUR). This is because the fiat value of the cryptocurrency itself fluctuates.
To get a true sense of your profit or loss in fiat terms, it's important to:
- Note the fiat price of the cryptocurrency at the time of your purchase.
- Note the fiat price of the cryptocurrency at the time of your sale.
Annualized ROI:
If you provide purchase and sale dates, the tool can calculate a simple annualized ROI to help compare investments held for different periods. This is calculated as:
Annualized ROI = ((1 + Total ROI as decimal)^(1 / Holding Period in Years)) - 1
Key Considerations for NFTs:
- High Volatility: The NFT market is known for its extreme price volatility. Values can change rapidly.
- Liquidity Risk: Not all NFTs can be easily sold at your desired price. Some may have very few buyers.
- Scams and Security: The space is prone to scams and requires careful security practices.
- Subjectivity of Value: NFT value is often driven by community, art, utility, and speculation, which can be highly subjective.
This tool provides calculations based on the data YOU input. It does not offer financial advice, predict future values, or account for all potential market risks and nuances specific to individual NFTs or collections.