Chart showing a headline 20% crypto gain compared with the gain after fees and after tax.
"I bought at $0.50, it hit $0.60, so I made 20%." Not quite. Fees on both sides, the average price of several purchases and, later, taxes can all change your real result. A trade that looks like +20% on the chart can be noticeably smaller in your account.
In this guide you will learn how to calculate crypto profit correctly, how to find your break-even price, why average cost matters, and which hidden costs to include. Every example uses real numbers you can check.
Last updated: October 2026.
The Basic Formulas
- Total cost = amount paid + purchase fees
- Net proceeds = amount received − selling fees
- Profit or loss = net proceeds − total cost
- ROI (return on investment) = profit ÷ total cost
Worked Example With Fees
You buy $1,000 of a coin at $0.50, which gives you 2,000 coins. The exchange charges a 0.5% fee on each trade. Later you sell everything at $0.60.
| Step | Calculation | Result |
|---|---|---|
| Coins bought | $1,000 ÷ $0.50 | 2,000 coins |
| Purchase fee | 0.5% of $1,000 | $5.00 |
| Total cost | $1,000 + $5 | $1,005.00 |
| Sale amount | 2,000 × $0.60 | $1,200.00 |
| Selling fee | 0.5% of $1,200 | $6.00 |
| Net proceeds | $1,200 − $6 | $1,194.00 |
| Profit | $1,194 − $1,005 | $189.00 |
| ROI | $189 ÷ $1,005 | 18.81% |
The headline move was +20% ($200), but your real return is 18.81% ($189). The gap is small here, but it grows with larger fees and with more trades.
What Is Your Break-Even Price?
Because you pay a fee when you buy and again when you sell, the price has to rise a little just for you to get your money back. In the example above:
Break-even price = total cost ÷ (coins × (1 − selling fee rate))
$1,005 ÷ (2,000 × 0.995) = about $0.5050
That is roughly 1.01% above your entry price. If the fee were 1.5% per trade instead, the same calculation gives about $0.5152, which is 3.05% above the entry. High fees quietly raise the hurdle every trade has to clear.
Average Cost When You Buy More Than Once
Most people do not buy at one price. Suppose you buy 1,000 coins at $0.50 ($500) and another 1,000 coins at $0.80 ($800). Your total cost is $1,300 for 2,000 coins, so your average cost is $0.65 per coin, not $0.50 and not $0.80.
If the price is $0.70, your holding is worth $1,400, which is a profit of $100 (about 7.7%) on your $1,300 cost. Judging that position by its first purchase price would have made it look like a 40% gain. This is also how regular buying works in a DCA plan, so our DCA Calculator is a good way to see your average cost build up.
Realized vs Unrealized Profit
Unrealized profit is a gain on paper: you still hold the coins and the price can change before you sell. Realized profit is locked in once you sell. Many people count unrealized gains as money they already have and then feel a loss when the price falls. Track both, but be clear about which one you are looking at.
Why Losses Are Harder to Recover Than They Look
Percentages are not symmetric. The bigger the drop, the larger the gain you need just to get back to even:
| If the price falls | You need to gain |
|---|---|
| −20% | +25% |
| −30% | +42.9% |
| −50% | +100% |
Be Careful With "Annualized" Returns
An 18.81% gain in 90 days works out to roughly 101% when annualized. It sounds great, but it assumes you could repeat the same result four times in a row, which you usually cannot. Use annualized figures only to compare similar situations, and never as a promise of what comes next.
Costs People Forget
- Network (gas) and withdrawal fees: moving coins can cost a fixed amount that hurts small positions the most.
- Spread and slippage: the price you actually get can differ from the price on the chart, especially in less liquid markets.
- Taxes: they depend on your country. Using an illustrative 15% rate, the $189 profit above becomes about $160.65 after tax. See our Crypto Tax Calculator for a rough estimate, and check your local rules.
A Simple Checklist to Calculate Your Real Profit
- Add up everything you paid for the coins, including purchase fees.
- If you bought several times, divide the total cost by the total coins to get your average cost.
- Multiply your coins by the sale price, then subtract the selling fee and any network fees.
- Subtract your total cost to get the profit or loss, and divide by the cost to get the ROI.
- Calculate your break-even price so you know the minimum you need.
- Estimate the tax and see what you keep after it.
You can skip the manual work and test any trade with our free Crypto Profit Calculator before you make it.
Key Takeaways
- Real profit is net proceeds minus total cost, and both include fees.
- Fees on both trades set a break-even price above your entry price.
- With several buys, use your average cost instead of the first price.
- A −50% drop needs a +100% gain to recover.
- Gas, spreads and taxes can take a meaningful part of the profit, so count them.
Frequently Asked Questions
How do I calculate profit if I bought at different prices?
Add up the total you paid, including fees, and divide it by the total number of coins to get your average cost. Compare your sale price with that average.
Do fees really matter?
Yes. A 0.5% fee on each trade cut our +20% trade to +18.81%. With higher fees, frequent trading or small amounts, the effect is larger.
What is the difference between profit and ROI?
Profit is the amount in money, such as $189. ROI is that profit as a percentage of what you paid, such as 18.81%.
Should I include taxes?
If you want to know what you actually keep, yes. Rules vary by country, so check yours or ask a tax professional.
Ready to run your own numbers? Try our free Crypto Profit Calculator.
Educational content only, not financial, tax or legal advice. Crypto is volatile and you can lose some or all of your money. All numbers in the examples are illustrations, not predictions. Do your own research before you invest.
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