How to Calculate Crypto Profit and Loss (With Examples)
How to Calculate Crypto Profit
Understanding your cryptocurrency profit and loss is essential whether you're trading or just HODLing. Here's a complete breakdown.
The Basic Formula
Profit/Loss = (Sell Price × Coins) − (Buy Price × Coins) − Fees
Step-by-Step Example
Let's say you invested $5,000 in Bitcoin when the price was $40,000:
1. **Coins purchased**: $5,000 ÷ $40,000 = **0.125 BTC** 2. **Buy fee** (0.1%): $5,000 × 0.001 = **$5** 3. **Total cost**: $5,000 + $5 = **$5,005**
Now Bitcoin is at $67,420: 4. **Sale revenue**: 0.125 × $67,420 = **$8,427.50** 5. **Sell fee** (0.1%): $8,427.50 × 0.001 = **$8.43** 6. **Net revenue**: $8,427.50 − $8.43 = **$8,419.07** 7. **Profit**: $8,419.07 − $5,005 = **$3,414.07** 8. **ROI**: $3,414.07 ÷ $5,005 = **+68.2%**
What is the Break-Even Price?
The break-even price is where your profit equals your loss. It accounts for your entry fees and must be exceeded to generate profit.
Break-Even Price = Buy Price × (1 + Buy Fee%) × (1 + Sell Fee%)
Use Our Calculator
Don't do this manually — use our Crypto Profit Calculator to instantly calculate profit, loss, fees, and break-even price.
Multiple Buys (Average Cost Basis)
If you bought at multiple prices, calculate your **average cost basis**:
Average Cost = Total Amount Spent ÷ Total Coins Owned
This is where our DCA Calculator becomes invaluable.
Tax Implications
In Australia, crypto profit is a **Capital Gains Tax (CGT) event**. If you held for more than 12 months, you may be eligible for a 50% CGT discount.
Always consult a tax professional for your specific situation.