The NFT Flip Calculator is a powerful tool designed to help individuals involved in the buying and selling of non-fungible tokens (NFTs) accurately assess their potential profits. By inputting specific details such as the buy price, sell price, collection royalty, service fee, buy gas fee, and list gas fee, users can quickly determine their potential earnings from flipping NFTs.
Formula of NFT Flip Calculator
The calculation performed by the NFT Flip Calculator is as follows:
Profit = Sell Price – Buy Price – Collection Royalty – Service Fee – Buy Gas Fee – List Gas Fee
Where:
- Buy Price represents the initial purchase price of the NFT in Ethereum (ETH).
- Sell Price indicates the expected selling price of the NFT in ETH.
- Collection Royalty is the percentage of the selling price that goes to the collection as royalty.
- Service Fee denotes the percentage of the selling price charged as a service fee.
- Buy Gas Fee refers to the gas fee incurred during the purchase transaction, typically around 0.00486 ETH.
- List Gas Fee represents the gas fee incurred when listing the NFT for sale, typically around 0.002 ETH.
Now let’s delve deeper into how this calculator can be effectively utilized by NFT enthusiasts.
General Terms Table
Here’s a table listing some general terms related to NFT trading that users might find helpful:
| Term | Definition |
|---|---|
| NFT | Non-fungible token, a digital asset representing ownership or proof of authenticity of a unique item or piece of content. |
| ETH | Ethereum, a decentralized platform that enables smart contracts and distributed applications (DApps) to be built and operated without downtime, fraud, or interference. |
| Gas Fee | The fee required to successfully conduct a transaction or execute a contract on the Ethereum blockchain. |
| Collection Royalty | The percentage of the selling price that goes to the original creator or owner of the NFT. |
| Service Fee | The fee charged by the platform or marketplace for facilitating the buying and selling of NFTs. |
Example of NFT Flip Calculator
Let’s illustrate the functionality of the NFT Flip Calculator with an example scenario:
Suppose you purchased an NFT for 2 ETH (Buy Price) and plan to sell it for 3 ETH (Sell Price). The collection royalty is 10%, the service fee is 5%, and the gas fees are 0.00486 ETH for buying and 0.002 ETH for listing. Using the calculator, we can determine the potential profit:
Profit = 3 ETH (Sell Price) – 2 ETH (Buy Price) – (3 ETH * 10%) (Collection Royalty) – (3 ETH * 5%) (Service Fee) – 0.00486 ETH (Buy Gas Fee) – 0.002 ETH (List Gas Fee)
Profit = 3 – 2 – 0.3 – 0.15 – 0.00486 – 0.002
≈ 0.44314 ETH
Most Common FAQs
The NFT Flip Calculator provides accurate estimates based on the input values provided by the user. However, it’s essential to note that actual profits may vary due to factors such as market fluctuations and transaction fees.
Yes, the results obtained from the NFT Flip Calculator are reliable for making informed decisions regarding the buying and selling of NFTs. However, users should always consider other factors and perform due diligence before finalizing any transactions.
