Prediction market fees: calculate the real cost

Net profit equals your proceeds minus the cost of the contracts and applicable fees. A $1 settlement payout is not $1 of profit. Entry fees, exit fees, and funding costs can change the result. Check written contract rules, account eligibility and total costs. Trading involves risk, including loss of money.

How do payout and profit differ?

In a hypothetical example, buying 100 contracts at 40 cents costs $40. If they settle at $1 each, the gross payout is $100. Subtract the $40 entry cost and $2 of assumed total fees: net profit is $58. If the contracts settle at zero and the $2 fee still applies, the total loss is $42.

Why can fees differ between markets?

Kalshi (opens in a new tab)’s published help guidance says some markets carry different fees and some resting orders can incur maker fees when they execute. Check the actual schedule and order preview. Copying a rate from another contract, another platform, or an international product can produce the wrong estimate.

Which price can you actually trade?

The latest traded price is not a guarantee that you can buy or sell the quantity you want at that price. An order may fill at multiple prices. A difference between buying and selling prices can also affect an early exit, even before fees.

How do you compare total trading costs?

Use the same contract definition and settlement terms. Enter the number of contracts, the executable entry price, and applicable charges. If you plan to sell before settlement, also estimate the exit price and exit fee. Our settlement calculator intentionally does not forecast that exit.

Why can percentage returns mislead?

A small purchase price can produce a large percentage gain if a contract pays out, while still carrying a high chance of losing the entire entry amount. A large possible return is not evidence of a good trade. Price, uncertainty, fees, and position size must be considered together.

Why should you assess rewards separately?

A welcome reward is not part of the contract’s underlying payout. Keep it outside your trading calculation until you understand when it is credited, whether it expires, what qualifies, and whether it is withdrawable. This avoids treating conditional promotional value as guaranteed cash.

Sources

• Kalshi fee guidance and official schedule — checked October 14, 2026
• Kalshi member agreement — checked September 26, 2026

Frequently asked questions

Is a $1 payout the same as $1 profit?

No. Subtract what you paid for the contract and all applicable costs to calculate profit.

Does the calculator use live platform fees?

No. You enter an assumed total fee. Check the platform’s actual order preview and schedule.

Can I sell before settlement?

That depends on the contract and market. A buyer, available liquidity, and an executable price are required.

What is a prediction market contract?

It is a contract tied to a defined event. Read its resolution criteria, deadline, settlement source and exception rules.