How to use a crypto profit calculator
Choose the fiat currency you used to purchase your crypto (USD, CAD, AUD, GBP, etc)
Select the crypto that you traded with (this will auto-fill the current price and a random sell amount so you can preview the results)
Enter the actual amount that you purchased, along with your purchase price and sale price
Enter any relevant fees (optional)
View your gain or loss
What is a crypto profit calculator?
This tool can help you calculate your profit or loss from crypto, whether you’ve already made the transaction or whether you’re trying to calculate your unrealized profit or loss. This can help you better understand and plan your investments.
How is profit calculated?
To calculate your profit from crypto, you simply subtract your cost basis (your purchase price plus any allowable fees) from your sale price. If you otherwise acquired or disposed of your crypto, for example, by trading crypto or through rewards, use the fair market value of your crypto on the day of your transaction.
What if I don't have the information I need?
If you’re not sure of your purchase price or sale price, Koinly can help. When you import your trading history to Koinly, it can identify your cost basis, including your purchase price or the fair market value of your crypto on the day you acquired it. It even factors in your fees, all automatically.
Should I reinvest my crypto profits?
This depends on your financial circumstances and investment strategy. Reinvesting your profits from crypto may lead to a larger return in the future, and some investors opt to reinvest gains into less volatile assets like property and stocks. A good rule of thumb is to regularly take profits and never invest more than you can afford to lose.
What is the best percentage to take profit in crypto?
This percentage will differ for each investor and their risk preference. Many investors opt to measure crypto returns against the S&P 500 average, which is around an 11% annual return historically. In general, the higher return you aim for, the higher the risk, as the market is volatile.
How to calculate taxes on crypto profits
To calculate capital gains and losses, you'll subtract your purchase amount (plus any allowable fees) from your sale price. Any profit is generally capital gain and subject to capital gains tax.
To calculate crypto income, take the fair market value of your crypto on the day you acquired it in USD. You'll pay income tax on this amount.
A crypto tax calculator can calculate all of this for you automatically.
How do I track my profits and losses automatically?
Koinly makes it easy to track your entire portfolio, including profits and losses, for free.
Just connect your exchanges and wallets to Koinly, and it will automatically track your profits and losses for every single transaction and asset. Better still, Koinly can even track unrealized profits and losses to help you make more informed decisions about when to hold, take profits, or realize losses.
