Crypto Profit Calculator

The IRS treats cryptocurrency as property. Selling crypto triggers capital gains tax. Short-term gains (held less than 1 year) are taxed as ordinary income (10-37%). Long-term gains (held 1+ years) are taxed at preferential rates of 0%, 15%, or 20% depending on your income.

Generally no — you do not owe tax on unrealized gains (holding crypto that has increased in value). However, receiving crypto as payment, mining rewards, staking rewards, and airdrops are taxable as ordinary income when received.

Exchange fees reduce your profit in two ways: buy fees increase your cost basis, and sell fees reduce your proceeds. For example, a 0.5% fee on both sides of a $10,000 trade costs $100 total. Fees can be added to your cost basis for tax purposes, reducing your taxable gain.

Yes. Crypto losses can offset capital gains dollar-for-dollar. If your losses exceed your gains, you can deduct up to $3,000 per year against ordinary income and carry forward remaining losses to future years. This is called tax-loss harvesting.

ROI varies dramatically in crypto. Bitcoin has historically averaged about 200% annually, but with extreme volatility. A realistic long-term expectation might be 20-50% annually for major cryptocurrencies, though past performance does not guarantee future results.