How to calculate crypto profit (with fees, average cost and taxes)

To calculate crypto profit, subtract what you paid for the coins and every fee from what you receive when you sell. As a formula: Profit = (coins sold × sell price) − cost basis − fees. Divide the profit by what you invested and multiply by 100 to get your return on investment (ROI) as a percentage.

That is simple for one buy and one sell. It gets harder when you bought at several prices, paid fees on both sides or sold only part of your position. This guide works through each case with numbers, then shows how the result is taxed in the US and UK.

The crypto profit formula

Cost basis

What you paid for the coins, including buying fees.

Proceeds

What you receive when you sell, after selling fees.

Profit or loss

Proceeds − cost basis.

ROI

Profit ÷ cost basis × 100.

Step by step for a single trade:

1. Coins bought = (amount invested − buying fee) ÷ buy price.
2. Value when sold = coins × sell price − selling fee.
3. Profit = value when sold − amount invested.
4. ROI = profit ÷ amount invested × 100.

Worked example: one buy, one sell

You invest $1,000 in Bitcoin at $40,000 and sell at $52,000. The exchange charges 0.1% on each trade.

Without fees the profit would be exactly $300 (a 30% price rise). Fees cost $2.60 here. On a small account trading often, the same fees can eat most of the gain, which is why frequent traders should always calculate profit after fees.

How to calculate profit when you bought at different prices

Most people buy in several steps. To find your profit, first work out your average cost per coin: total spent ÷ total coins.

If you sell all 0.03 BTC at $50,000 you receive $1,500, so your profit is $1,500 − $1,200 = $300, or 25%. Buying a fixed amount on a schedule is called dollar-cost averaging; our DCA guide explains why it pulls your average price down, and the DCA Calculator does this sum for you.

Selling only part of your coins

When you sell part of a position, you need to know which coins you sold, because each lot has its own cost. Tax rules decide this:

• FIFO (first in, first out): the oldest coins are sold first. It is the US default when you do not identify specific lots.
• Specific identification: you choose the lot, for example the most expensive one to reduce a gain. In the US this needs adequate records, and since 2025 cost basis has to be tracked per wallet or account.
• Pooling (UK): HMRC uses a single pooled average cost for each token, with special rules for coins bought and sold within 30 days.

In the example above, selling 0.01 BTC at $50,000 under FIFO uses the $30,000 lot: profit $200. Under specific identification using the $45,000 lot it would be $50.

Realised vs unrealised profit

Unrealised profit is the paper gain on coins you still hold: current value − cost basis. It moves with the price every second. Realised profit is locked in when you sell, swap one coin for another or spend crypto. Only realised profit is taxed in most countries, but both matter for knowing how your portfolio is doing.

How much do you need to gain to recover a loss?

Losses and gains are not symmetrical. After a fall you need a bigger percentage rise to get back to where you started.

This is the maths behind sizing positions carefully. Our guide on how much to risk per crypto trade and the Position Size Calculator help you cap the damage from any one trade.

Break-even price after fees

With a fee of f on both the buy and the sell, your break-even sell price is buy price ÷ (1 − f)². At 0.1% each way, a $40,000 buy breaks even at about $40,080. At a 1.5% retail fee each way it is about $41,228, so the price has to rise more than 3% before you make anything.

Calculating crypto profit in Excel or Google Sheets

Put the amount invested in A2, buy price in B2, sell price in C2 and the fee per trade as a percentage in D2. Then:

• Coins: =A2*(1-D2/100)/B2
• Proceeds: =A2*(1-D2/100)/B2*C2*(1-D2/100)
• Profit: =A2*(1-D2/100)^2*C2/B2-A2
• ROI: =(A2*(1-D2/100)^2*C2/B2-A2)/A2

How crypto profit is taxed

Tax rules change often and depend on where you live, so treat this as a starting point and check with a tax professional.

• United States: the IRS treats crypto as property. Selling, swapping or spending it can create a capital gain. Coins held one year or less are taxed at ordinary income rates; longer holdings get the long-term rates of 0%, 15% or 20%. Brokers report sales on the new Form 1099-DA: gross proceeds from 2025 sales, and cost basis for covered coins from 2026.
• United Kingdom: gains are subject to Capital Gains Tax at 18% or 24% once you go over the £3,000 annual exempt amount.

Staking rewards are usually taxed as income when you receive them, then again as a gain or loss when you sell. Our Ethereum staking guide covers how that works.

FAQ

How do I calculate profit percentage on crypto?

Divide your profit by the amount you invested and multiply by 100. A $297.40 profit on $1,000 is a 29.74% return.

Do I include fees in my cost basis?

Yes. In the US, buying fees are added to your cost basis and selling fees reduce your proceeds, which lowers your taxable gain. Keep exchange statements for both sides of each trade.

Is swapping one crypto for another a taxable profit?

In the US and UK, yes. A swap counts as selling the first coin at its market value, so any gain since you bought it is realised.

How do I calculate profit on many trades?

Track each lot's cost and date, then match sales to lots using your country's method (FIFO, specific identification or pooling). For a quick estimate on a single position, use your average cost per coin.