P2P Profit Calculation: Rate, Fees, Tax and Real Returns
A nice spread in a table and money in your account are different things. We go through the net profit formula, where tax is your country’s variable, and calculate a live rupee setup: what remains after fees, tax and withholding on turnover.
All calculations in this lesson use one live setup and a volume of 1,000 USDT: prices are the best Binance UPI ads from counterparties with 100+ orders and a 95%+ completion rate on October 30, 2026. The formula itself is universal: plug in your currency’s prices and your country’s rules.
The formula
- Cost = buy price × amount of USDT.
- Revenue = sell price × amount of USDT.
- Gross result = revenue − cost.
- Fees = fee rate × (cost + revenue), if the exchange charges both sides.
- Tax = your country’s tax rate × taxable profit.
- Net result = gross result − fees − tax.
- Withholding at source (if your country has it) — part of the trade amount withheld right away and credited against tax later.
Taker: why the setup is negative
| Step | Price, ₹ | Amount, ₹ |
|---|---|---|
| Buy from the best trusted seller | 104.99 | 104,990 |
| Sell to the best trusted buyer | 103.93 | 103,930 |
| Result | −1,060 (−1.01%) |
Maker: the same setup with your own ads
| Step | Price, ₹ | Amount, ₹ |
|---|---|---|
| Buy with your own ad (₹0.01 above the best bid) | 103.94 | 103,940 |
| Sell with your own ad (₹0.01 below the best ask) | 104.98 | 104,980 |
| Gross result | +1,040 (+1.00%) |
Maker fees
Takers on major P2P exchanges usually pay no fee, while makers may be charged depending on the currency and account level. Check the current rate in your exchange’s rules. Below is how different rates change the result of the same trade.
| Fee | Fees per round, ₹ | Result before tax, ₹ |
|---|---|---|
| 0% | 0 | +1,040 |
| 0.1% | 209 | +831 |
| 0.25% | 522 | +518 |
Tax is your country’s variable
Tax on crypto profit differs by country: some have none, some treat it as ordinary income, some have a separate rate. The table shows how the same trade changes under different rates. What to check in your country is covered in lesson 10.
| Tax rate | Tax, ₹ | Result after tax, ₹ |
|---|---|---|
| 0% | 0.00 | +1,040.00 |
| 10% | 104.00 | +936.00 |
| 15% | 156.00 | +884.00 |
| 20% | 208.00 | +832.00 |
| 30% + 4% cess (India) | 324.48 | +715.52 |
Withholding at source: money drops out of circulation
Some countries withhold part of the tax right away from the trade amount. In India it is 1% TDS on crypto transfers: on a ₹104,980 sale that is ₹1,049.80 — more than the trade’s entire gross profit. The withholding is credited against your annual tax, and any excess is refunded through your return. Until then the money is out of circulation: if capital turns over many times, withholdings accumulate and hit an arbitrageur’s liquidity the hardest.
Where the bank rate matters
If the setup starts and ends in local currency, the bank dollar rate does not affect the result. It matters when you bring capital in dollars or take profit abroad. Compare the bank rate and P2P in the P2P.Army converter — for any currency pair.
Frequently asked questions
Is withholding at source a loss of money?
No, it is a tax prepayment: the withheld amount is credited when your annual tax is calculated, and any excess is refunded. But until then that money does not work in your turnover, so withholding matters for liquidity planning.
How do I calculate a setup if I do not know my country’s tax rate?
Calculate the result at several rates, as in the lesson’s table, and find out your country’s rules (lesson 10 and the country guides). If a setup only pays off with no tax, it is not worth it.
How do I quickly check whether a setup pays off?
Start with the P2P.Army spreads page: if the maker spread for a method does not cover fees and tax, the setup is not worth it. Then check specific ads in the order book builder.
Sources
- 1.P2P.Army: USDT/INR spreads on Binance P2PP2P.Army10/30/2026official
- 2.
- 3.P2P.Army: USD/INR converter and bank ratesP2P.Army10/30/2026
About the author
Crypto expert, arbitrage trader and investor
Crypto expert and hands-on crypto arbitrage trader, investor and software developer with over 20 years of experience. On the P2P.Army blog he covers exchange news, P2P and cross-exchange arbitrage.
- Crypto arbitrage
- P2P arbitrage
- Cross-exchange arbitrage
- Crypto exchanges
- Investing
- Software development
