Can't understand arbitrage profit calculation
As explained by http://www.investopedia.com/terms/p/profit.asp:


  profit = total revenue - total expenses


or in plain English:

profit = (what you had received after selling all your coins) - (what you had paid to buy your coins)


so, for example:

If you had spent $1000 for Bitcoin priced at $500/BTC on exchange A, and say the fee is 1%, you will received

$1000/$500*(1-0.01) = 1.98 BTC


If you move and sell your 1.98 BTC at for $600/BTC on exchange B, which also charges a 1% fee, you will receive

1.98*$600*(1-0.01) = $1176.12


So your profit will be

$1176.12 - $1000 = $176.12


Remember to also subtract any withdrawal/deposit fees if applicable.