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Crypto Profit Calculator
Total Profit/Loss
ROI: 19.8%
Understanding Crypto Profit Calculation
Calculating cryptocurrency profit isn't just "sell price minus buy price." You need to account for:
- Trading Fees: Exchanges charge 0.1%-1.5% per trade (buy + sell = double fee)
- Network Fees (Gas): Blockchain transaction costs (can be $1-$50+ for Ethereum)
- Taxes: Short-term gains (ordinary income) vs Long-term (capital gains)
- Spread: Difference between buy/sell prices on the exchange
Profit Formula Breakdown
Step 2: Gross Return = Coins × Sell Price
Step 3: Fees = (Investment + Gross Return) × Fee %
Step 4: Net Profit = Gross Return - Investment - Fees
Step 5: ROI = (Net Profit / Investment) × 100%
Real Example: Bitcoin Trade
Scenario: You invest $10,000 in Bitcoin when it's at $50,000 per BTC.
Coins Purchased: $10,000 / $50,000 = 0.2 BTC
Sell at: $60,000 per BTC
Gross Return: 0.2 × $60,000 = $12,000
Trading Fees (0.5%): $110 ($50 buy + $60 sell)
Net Profit: $12,000 - $10,000 - $110 = $1,890
ROI: 18.9% (not a simple 20%!)
💡 Expert Tip: Tax Harvest Like a Pro
Hold for 366+ days to qualify for long-term capital gains (15% vs 24-37% short-term). If you're sitting on gains, waiting a few extra weeks past the 1-year mark can save thousands in taxes.
— Alex Chen, CFA & Crypto Tax Specialist
⚠️ Common Mistakes to Avoid
Many calculators only show exchange fees. But moving your crypto off the exchange costs gas. Ethereum gas can be $20-$100+ during busy times. Always add ~$50-100 buffer for network fees.
Crypto volatility tricks people into buying at peaks ("it's going to the moon!") and panic-selling at lows. Set buy/sell targets BEFORE entering a trade. Stick to the plan.
Currently, crypto isn't subject to the wash-sale rule (can sell at a loss and rebuy immediately). But Congress is proposing changes. Don't assume this loophole lasts forever.
The IRS requires you to report your cost basis (what you paid). If you've traded 50 times, tracking this manually is a nightmare. Use tools like CoinTracker or Koinly from day one.
Reviewed by: Alex Chen, CFA & Crypto Tax Specialist
Last updated: November 27, 2025
Frequently Asked Questions
How do I calculate crypto profit?
Crypto Profit = (Sell Price - Buy Price) × Amount - Trading Fees - Taxes. Example: Buy 1 BTC at $30k, sell at $40k. Gross: $10k. Fees (0.5%): $200. Taxes (24%): $2,352. Net: $7,448. Always subtract fees AND taxes.
Are crypto gains taxed?
Yes. Crypto is property, not currency. Short-term gains (<1 year) taxed as ordinary income (10-37%). Long-term gains (>1 year) at preferential rates (0%, 15%, 20%). Selling, trading, or spending crypto triggers taxable event.
What fees do exchanges charge?
Coinbase: 0.5-1.5%. Binance: 0.1%. Kraken: 0.16-0.26%. Plus network fees (gas) for withdrawals. On a $10k trade, fees can be $10-$150. Day trading? Fees compound quickly.
Should I HODL or take profits?
No one knows. If up 500%, taking some profit isn't 'weak.' Tax tip: Sell only what you need after 1 year to get long-term capital gains rate (15% vs 24-37%). Don't let tax tail wag investment dog, but plan for it.