Short answer: Crypto profit = (coins × sell price × (1 − sell fee %)) − (amount invested + buy fee). ROI is that profit divided by your total cost. Fees on both sides mean a coin must rise more than the combined fee percentage before you break even, and profit before tax is not the same as money you keep.
The formula in three steps
First find how many coins you own: amount invested divided by the buy price. Second, find net proceeds: coins times the sell price, minus the selling fee. Third, subtract your total cost, which is the amount invested plus the buying fee.
This is the same structure the IRS uses for cost basis and proceeds, so the number you calculate here is also your capital gain before tax.
| Step | Calculation | Result |
|---|---|---|
| Coins bought | $1,000 ÷ $2.00 | 500 |
| Buy fee | $1,000 × 0.5% | $5.00 |
| Total cost | $1,000 + $5 | $1,005.00 |
| Gross proceeds | 500 × $3.00 | $1,500.00 |
| Sell fee | $1,500 × 0.5% | $7.50 |
| Profit | $1,492.50 − $1,005 | $487.50 |
| ROI | $487.50 ÷ $1,005 | 48.5% |
Why price change and ROI differ
In the example the coin rose 50%, but ROI was 48.5%. The gap is the fees. On small moves the difference is proportionally much larger: a 1% price rise with 0.5% fees on each side is nearly wiped out.
Spreads matter too. Instant-buy screens often quote a price above the market rate, which acts like an extra hidden fee. Use the actual fill price from your trade history, not the chart price.
Break-even price
Your break-even sell price is total cost divided by (coins × (1 − sell fee %)). With 0.5% fees each way, a coin bought at $2.00 must reach about $2.02 before you net any profit.
Knowing break-even before you buy helps set realistic exit targets and shows when frequent small trades are mostly paying the exchange.
Multiple buys: average cost vs tax lots
If you bought several times, a simple average entry price is useful for tracking overall performance. For taxes, US rules require per-lot basis tracked per wallet or account, with FIFO as the default unless you specifically identify lots.
That means your tax gain on a partial sale can differ from what an average-cost portfolio app shows.
- Track each buy: date, quantity, price, fee.
- Use average cost for performance, lot-level basis for taxes.
- Record which lots each sale used.
From profit to what you actually keep
Profit is pre-tax. In the US, gains on coins held a year or less are taxed at ordinary income rates, and longer holds at 0%, 15% or 20%, plus state tax in most states. Run the result through a tax estimate before treating it as spendable money.
Losses can offset gains and up to $3,000 of ordinary income per year, so a realized loss still has value.
Limits of any profit calculator
A calculator models one buy and one sell. It cannot see network (gas) fees paid separately, staking rewards received, funding payments on futures, or leverage liquidations. Leveraged trades need their own margin math.
Past price moves do not predict future returns, and crypto prices can fall sharply. This guide explains arithmetic, not investment advice.
Official sources and limitations
Policy sources consulted November 7, 2026. Platform terms, regional eligibility, payment screens and account notices take precedence over this guide. Example amounts are hypothetical, not guaranteed payouts. This is educational guidance, not personalized financial or tax advice.
Run your own numbers
Use your own statement amounts and measured rates instead of treating a calculator default as an official payment quote.
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