Free Crypto Profit Calculator

To calculate crypto gains or profit, there are two primary methods: The first entails comparing the current value of your holdings to the price at which they were purchased. The second method requires determining the amount of money earned or lost in fiat currency. For instance, if we bought 10 BTC for $100,000 in January 2018 and sold it for $150,000 in December 2018, we made a profit. According to our calculation, we landed a 50% profit ($50,000). By deducting the purchase amount from the selling price, you can accurately determine if your investment was profitable.

Navigating the world of cryptocurrency taxes can be a daunting task, especially for newcomers. The diverse range of cryptocurrencies, each with unique price oscillations, adds an extra layer of complexity.
To accurately calculate your crypto taxes, it is crucial to maintain a detailed record of all your transactions throughout the year. You must ascertain the capital gains or losses incurred on each transaction. For instance, if you purchased 10 Bitcoins for $100,000 and later sold it for $150,000 six months thereafter, your profit would amount to $50,000.
If this was your lone transaction for the year, the tax calculation is straightforward using this figure. However, the process becomes more complicated if you have multiple transactions with varying prices. For example, if you bought 1 Bitcoin for $10,000, sold half at $11,000, and held onto the rest, you now have two transactions to consider.
The initial step involves classifying each transaction as either a capital gain or loss. Bear in mind that tax regulations on capital gains/losses differ from country to country, with factors such as the duration of asset ownership before sale playing a significant role.