How a crypto gain is calculated
Nearly everywhere that taxes crypto treats it as property rather than currency. You owe on the gain when you dispose of it, not on the value while you hold it.
taxable = gain − losses carried − allowance
tax = taxable × your rate
What counts as a disposal
More than people expect. In most systems each of these is a taxable event:
- Selling crypto for fiat
- Trading one coin for another — the most commonly missed one, and it applies even though no money reached your bank
- Spending crypto on goods or services
- Receiving staking rewards, mining income or airdrops, usually taxed as income at the value on the day received
Simply buying and holding is not a disposal, and neither is moving coins between wallets you control.
A worked example
Sold for $48,000, originally bought for $30,000, $200 in fees, taxed at 20%:
| Gross gain | $17,800.00 |
|---|---|
| Tax at 20% | $3,560.00 |
| Net proceeds | $44,240.00 |
| Return after tax | +47.47% |
Cost basis methods change the answer
If you bought the same coin several times, which purchase you are deemed to have sold determines the gain. FIFO sells the oldest coins first. Others allow specific identification or an average cost pool. The choice is not yours to make freely — jurisdictions mandate a method — and it can move the tax bill substantially. To work out your blended cost across several buys, use the average price calculator.
Losses are worth recording
Realised losses generally offset realised gains, and unused amounts often carry forward to later years. Traders who only track winners frequently overpay. Keep records of every disposal, including trades between coins, because reconstructing years of history from exchange exports is far harder than logging it as you go.
What this estimator cannot do
It applies one flat rate to one disposal. It does not know your jurisdiction's holding-period discounts, income bands, wash-sale equivalents, or the treatment of DeFi positions — an area where rules are still unsettled almost everywhere. Use it to size a liability roughly, then take the actual filing to an accountant who knows your local rules. Nothing here is tax advice.
Common questions
Do I pay tax on crypto?
In most countries, yes — usually as a capital gain when you dispose of it, and as income when you receive rewards. The rates and rules vary widely by jurisdiction.
Is swapping one crypto for another taxable?
In most systems yes, even though no fiat currency is involved. The trade is treated as disposing of the first asset at its market value.
What is cost basis?
What you paid for the asset, including acquisition fees. The gain is the difference between your proceeds and this figure.
Can I offset crypto losses against gains?
Generally yes, and unused losses can often be carried forward. Keep records of losing disposals as carefully as winning ones.
Is this calculator accurate for my country?
It gives a rough figure using a single flat rate. It cannot apply local holding-period rules, allowances or income banding, so treat the result as an estimate and confirm with an accountant.