Calculate Cryptocurrency Profits with the Right Crypto Calculators

In this guide, we learn how to calculate cryptocurrency profits earned from mining and trading, and use the right calculators to deduce your taxable income.

 

How to Calculate Cryptocurrency Profits?

There are several ways to make profits in cryptocurrencies such as investing, trading, and mining. Calculating the profits you made in digital assets is not a difficult process. But, there is a chance to miss out on certain things while calculating profits and losses.


Calculating crypto profits involves simple mathematics. You need to consider some of the basic concepts like adding and subtracting the respective amounts to know whether you made a profit or loss.


Besides considering the buying and selling prices, it is important to consider exchange fees, transaction fees, gas fees, investment charges, and more to know the final profit. Now, let's learn how to calculate your cryptocurrency profits.


Simple mathematics to calculate crypto profits

Imagine this scenario, where you have bought 1 Bitcoin (BTC) for $5,000. By the time you want to sell the BTC, the price has increased to $10,000. According to the basic math rules, profit is the difference between the selling price and cost price.


Here, Profit = selling price - cost price i.e., Profit = $10,000 - $5,000 = $5,000.


You have made a profit of $5,000. However, $5,000 is a gross profit. To know the net profit, you also need to include the fees involved during buying and selling of the Bitcoin.


When you trade on crypto exchanges, you are supposed to pay the trading fees. Fees are required when you transfer cryptocurrencies to another person or when you transact on the crypto exchange.


Different exchanges will have different fee structures. You need to deduct the fees involved in your BTC transactions to calculate the net profit. Let's say the transaction fee is 2% for the platform you use.


Gross profit is $5,000. Trading fees = 2% of total sales = $200.

Therefore, Net profit = Gross profit - fees = $5,000 - $200 = $4,800.


Crypto Profit Calculators

Crypto profit calculators are used to calculate profits quickly within minutes. What are some of the crypto profit calculators?


Sabe Calculator

  • Sabe is a simple calculator that helps keep track of your crypto profits. You have to enter basic details like the type of cryptocurrency, the number of coins or tokens and the cost price to determine your profits.

  • Sabe constantly updates the data according to the CoinMarketCap exchange rates which makes it easier for you to know how much profit or loss you have made at any given point in time. It also comes with the tools to help you understand more about crypto profits.


Easy Bitcoin Calculator

  • As the name suggests, this calculator find out profits related to Bitcoin (BTC). Easy Bitcoin Calculator calculates your BTC profits within minutes. Like the Sabe calculator, you need to input the number of Bitcoins, selling price, cost price and the fees charged during the transaction to calculate net profit.


Crypto-to-fiat calculators

Converting cryptocurrencies into fiat and vice versa is important when you invest or trade cryptocurrencies. While calculating profits between crypto and fiat exchange, you would have to consider exchange rates. Certain calculators help you find out the crypto-to-fiat profits easily by taking the fees into account.


CoinMarketCap calculator

  • This is a straightforward converter from fiat currencies into cryptocurrencies and vice versa. All you have to do is entering the number of currencies of your choice and choose the currency you want to convert into, and you can see the price.

  • CoinMarketCap calculator allows you to convert one fiat currency into another. Enter the input currency and select the currency you want to convert it into, to find out the price.


Currexy

  • Currexy tool also helps to convert crypto into fiat and vice versa. You can know how much your Bitcoin is worth in different types of currencies. Enter the amount of Bitcoin and see the equivalent amount in USD, EUR, GBR, ETH, LTC, etc.


Crypto mining profit calculators

Bitcoin (BTC) mining is a very difficult process and it consumes large amounts of electric power. To gain profits by mining, the final rewards must exceed the cost to mine Bitcoins.


Crypto mining profits depend on several factors such as mining rig’s hashing power, total power consumption in kWh, and pool fees for staking cryptocurrencies. The operational costs like electricity use and the cost to set up a computer system are included while mining cryptocurrencies. Some of the crypto mining profit calculators are:


BTC.com Mining calculator

  • This crypto-mining calculator will help you to find out mining profits made in a week, month, or year. You can add multiple rigs to this tool. It also allows you to set start difficulties, increase difficulty and profit ratios. It has the option to enter the beginning and end dates of mining to estimate total mining profits.


CryptoCompare Calculator

  • CryptoCompare calculator estimate mining profits of different cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Monero (XMR), Zcash (ZEC), Litecoin (LTC), etc. It enables you to calculate the profit ratio per day, mining cost, power consumption, pool fees, etc.


Crypto tax Calculators

Profits made on cryptocurrencies are taxable as they are similar to any other income generated. The tax charged on your crypto profits depends on several factors like the country you reside in, the number of cryptocurrencies sold, fiat value during the time of sale, and how long a trader holds the cryptocurrencies.


To calculate net profit, you need to deduct the taxes charged on your profits. The longer you hold cryptocurrencies, the lesser the tax charged on your profits. However, if you are at loss, you do not need to pay any tax. Some of the crypto tax calculators are,


CryptoTrader.Tax

  • This tool helps you estimate crypto profits, losses, and the tax charged on any activity like trading, mining, and simple buying and selling transactions. It will give you accurate results, as it considers all your historical transactions from different crypto platforms, exchanges, mining pools, etc.


Cryptotaxcalculator.io

  • This is the best and powerful tool to calculate crypto tax for an average investor. Crypto tax calculator performs accurate tax calculations. You can calculate taxes for complex scenarios like DeFi loans, DEX transactions, staking rewards, etc. This tool breaks down each calculation so that you can understand them.


To Summarize

Despite the volatility and other factors like fees, cryptocurrency trading is still profitable. People who are new to this industry need to be careful at the beginning while calculating profits and losses. Crypto profit calculators help you determine the gains and losses quickly and accurately without any trouble.