Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Transaction fees on both the buy and sell side, plus network fees, can consume a meaningful share of a modest gain, and because many jurisdictions tax cryptocurrency transaction by transaction rather than in aggregate, the exact basis and proceeds on each individual trade matter far more here than in typical securities recordkeeping.
Before you rely on it
What to check
Keep purchase cost, sale proceeds and every fee recorded at the individual transaction level, not as one blended average, since tax filing generally requires that level of detail.
The common error
Where people go wrong with crypto profit calculator
Tracking crypto gains as one blended average cost across all purchases rather than per transaction. Many tax jurisdictions require transaction-level basis reporting, and an averaged approach can produce a figure that doesn't match what's actually owed.
Sensitivity evidence
How crypto units changes the net crypto gain or loss
| Crypto units | Net crypto gain or loss | Return on cost | Net sale proceeds |
|---|---|---|---|
| 1.6 | $23,000 | 56.8% | $63,500 |
| 1.8 | $26,000 | 57.1% | $71,500 |
| 2worked example | $29,000 | 57.4% | $79,500 |
| 2.2 | $32,000 | 57.7% | $87,500 |
| 2.4 | $35,000 | 57.9% | $95,500 |
Every input, tested
Which input moves the net crypto gain or loss most
| Input | Tested from | To | Net crypto gain or loss at each end | Swing |
|---|---|---|---|---|
| Sale price per unit | $36,000 | $44,000 | $21,000 to $37,000 | $16,000 (55%) |
| Average purchase price per unit | $22,500 | $27,500 | $34,000 to $24,000 | $10,000 (34%) |
| Crypto units | 1.8 | 2.2 | $26,000 to $32,000 | $6,000 (21%) |
| Total exchange and network fees | $450 | $550 | $29,100 to $28,900 | $200 (0.7%) |
Two variables at once
Net crypto gain or loss by crypto units and average purchase price per unit
| Crypto units \ Average purchase price per unit | $20,000 | $25,000 | $30,000 |
|---|---|---|---|
| 1.6 | $31,000 | $23,000 | $15,000 |
| 1.8 | $35,000 | $26,000 | $17,000 |
| 2 | $39,000 | $29,000 | $19,000 |
| 2.2 | $43,000 | $32,000 | $21,000 |
| 2.4 | $47,000 | $35,000 | $23,000 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Crypto units | 2 |
| Average purchase price per unit | $25,000 |
| Sale price per unit | $40,000 |
| Total exchange and network fees | $500 |
| Net crypto gain or loss | $29,000 |
| Return on cost | 57.4% |
| Net sale proceeds | $79,500 |
Where the inputs come from
Crypto units is how many coins or tokens you sold, average purchase price per unit is your cost basis per coin including earlier purchases averaged together, and sale price per unit is what you sold at. Total fees include exchange trading fees and network or gas fees on both the purchase and the sale. Pull cost basis from your exchange's transaction history, since coins bought at several prices have different lots.
Using the net crypto gain or loss in a real decision
Set aside money for the bill.
When the result stops applying
The calculation does not include the tax, which can be large, or the cost basis method your exchange uses, which affects which lots are sold. Swapping one crypto for another is a taxable disposal, and so is using crypto to pay for goods. Prices are volatile and liquidity varies, so the sale price may differ from the quoted price on large orders.
What to compare it with
Estimate tax with the capital gains tax calculator, and use the tax-loss harvesting calculator for losses. The position size calculator helps decide how much of a portfolio to risk in a volatile asset. Keep a record of every transaction date and price, since reporting rules require them.
People also ask
Frequently asked questions
Is selling crypto taxable?
In the US, yes. Digital assets are treated as property, so selling, swapping or spending them can create a taxable gain or loss.
Where do I find my crypto cost basis?
Use your exchange's transaction history or tax report, and add all purchases. If you moved coins between wallets, keep the original purchase records.
Do network fees count?
Fees paid to buy add to your cost basis and fees paid to sell reduce your proceeds, so both lower the taxable gain.