How to use this calculator
Enter the price you paid per coin or token in the buy price field, then enter the price you sold at (or plan to sell at) in the sell price field. Next, enter the number of coins or tokens you traded. If your exchange charges a fee, enter the percentage for both the buy and sell sides.
The calculator will show your total cost basis, total proceeds, and net profit or loss after fees. You will also see your return on investment as a percentage, which tells you how much your original investment grew or shrank.
If you enter your buy and sell dates, the calculator will determine whether your gain qualifies as short term or long term for tax purposes. It will also compute an annualized return so you can compare this trade to other investments held for different time periods.
Use the results to evaluate whether a trade was truly profitable after accounting for all costs. Many traders overlook fees and taxes, which can turn an apparent gain into a net loss.
Understanding crypto taxes and cost basis
The IRS treats cryptocurrency as property, not currency. Every time you sell, trade, or spend crypto, it triggers a taxable event. Your tax liability depends on your cost basis (what you paid, including fees) and your holding period. Assets held for more than one year qualify for lower long term capital gains rates, while assets sold within one year are taxed at your ordinary income rate.
If you bought the same coin at different prices over time, your cost basis depends on which method you use. FIFO (first in, first out) assumes you sold the earliest purchased coins first. Specific identification lets you choose which lot to sell, potentially optimizing your tax outcome. Keeping detailed records of every transaction, including dates, amounts, prices, and fees, is essential for accurate tax reporting.
Frequently asked questions
How do I calculate crypto profit?
Multiply sell price by quantity, subtract sell fees, then subtract your total cost (buy price times quantity plus buy fees). The result is your net profit or loss on the trade.
Are crypto gains taxable?
Yes. The IRS treats cryptocurrency as property. Every sale, trade, or exchange triggers a taxable event. You must report gains and losses on your tax return.
What is the difference between short and long term gains?
Assets held one year or less are short-term and taxed at ordinary income rates (up to 37%). Assets held more than one year qualify for long-term rates of 0%, 15%, or 20%.
How do exchange fees affect my profit?
Fees reduce profit on both buy and sell sides. A 0.5% fee each way means you need over 1% price increase just to break even. Factor fees into every trade decision.
What is annualized return?
Annualized return converts your holding period return to an equivalent annual rate. This lets you compare investments held for different time periods on equal footing.