What is the Crypto Profit?
Crypto profit is straightforward arithmetic, but the numbers people quote usually ignore exchange fees on both sides and capital gains tax. On frequent trades, fees of 0.1–0.5% per side compound into a meaningful drag.
Most jurisdictions treat crypto as property for tax: disposals — including crypto-to-crypto swaps — are taxable events, which surprises many holders.
Formula & worked example
Net = Gross − buy fee − sell fee − capital gains tax
Break-even = (cost + buy fee) / (quantity × (1 − sell fee))
Worked example: 0.5 BTC bought at $42,000 and sold at $68,000. Gross profit is $13,000. Fees at 0.25% each side total about $137.50, and 20% tax on the remainder is $2,572 — leaving a net profit of roughly $10,290, a 49% net return rather than the 62% the price move implies.
How to use this crypto profit calculator
- Enter the quantity and your actual buy price including any spread.
- Enter the sell price, or a target to model a scenario.
- Check your exchange's fee tier — it varies with volume and maker/taker status.
- Set your capital gains rate; it differs widely by country and holding period.
Smart tips
- Crypto-to-crypto swaps are taxable disposals in most countries, even though no fiat is involved.
- Keep detailed records of every transaction — reconstructing cost basis years later is extremely painful.
- Some jurisdictions offer lower rates for holdings over 12 months; check before selling.
- Fees on frequent trading compound quickly: 0.25% each way on 50 round trips is 25% of capital.
- Never invest more than you can afford to lose entirely; crypto volatility routinely exceeds 50% drawdowns.
Frequently asked questions
How is crypto taxed?
Most countries treat it as property, taxing disposals as capital gains. Rates and holding-period rules vary substantially by jurisdiction.
Are crypto-to-crypto trades taxable?
In most jurisdictions yes — swapping one coin for another is a disposal of the first, triggering a taxable gain or loss.
What is my break-even price?
The price at which sale proceeds net of fees equal your total cost including the buy fee. It is always slightly above your purchase price.
Do exchange fees really matter?
Substantially for active traders. At 0.25% per side, fifty round trips consume around 25% of your capital before any price movement.
Want the theory behind the numbers? Read our crypto guides on the Money Blog.