How to Calculate Crypto Profit and ROI

Calculating crypto profit is straightforward: subtract what you paid from what you received. The key is being precise about fees and using consistent units.

The Basic Formula

Profit = (Sell Price − Buy Price) × Quantity − Fees
ROI (%) = (Profit / Amount Invested) × 100

Where:

• Sell Price — price per coin at sale (or current price for unrealized gains)
• Buy Price — price per coin at purchase
• Quantity — number of coins or tokens
• Fees — total exchange and network fees (buy + sell combined)

Worked Example

You buy 2 ETH at $2,000 per ETH and later sell at $3,500 per ETH. Total fees: $25.

Amount invested = 2 × $2,000 = $4,000
Proceeds        = 2 × $3,500 = $7,000
Profit          = $7,000 − $4,000 − $25 = $2,975
ROI             = ($2,975 / $4,000) × 100 = 74.4%

Profit vs ROI

Profit is the absolute dollar gain or loss.

ROI (return on investment) is the percentage return relative to what you invested. It allows comparison across different trade sizes.

A $1,000 profit on a $2,000 investment is a 50% ROI. The same $1,000 profit on a $20,000 investment is only 5% ROI.

Unrealized vs Realized Profit

• Unrealized (paper) profit — the hypothetical profit if you sold at current prices, but you have not sold yet. Calculated using the current market price as the sell price.
• Realized profit — the actual profit from a completed sale.

Only realized profit triggers a taxable event in most jurisdictions.

Including Fees

Fees reduce your net profit. Include:

• Exchange fees on the buy order (often 0.1–0.5% of trade value)
• Exchange fees on the sell order
• Network fees (gas fees for on-chain transactions)
• Withdrawal fees if you moved funds between exchanges

For small trades, fees can represent a significant percentage of profit.

Dollar-Cost Averaging (DCA)

If you made multiple purchases at different prices, calculate each purchase separately and sum:

Purchase	Price	Quantity	Cost
January	$25,000	0.1 BTC	$2,500
March	$30,000	0.1 BTC	$3,000
May	$35,000	0.1 BTC	$3,500
Total	—	0.3 BTC	$9,000

Average buy price = $9,000 / 0.3 = $30,000 per BTC.

If you sell 0.3 BTC at $45,000:

Profit = (45,000 − 30,000) × 0.3 = $4,500
ROI    = ($4,500 / $9,000) × 100 = 50%

Taxes

In most countries, profit from selling cryptocurrency is subject to capital gains tax. The rate may differ depending on:

• How long you held the asset (short-term vs long-term)
• Your total annual income
• Your country of residence

This calculator shows gross profit before tax. Consult a tax professional for advice specific to your situation.