Free Crypto Tax Calculator

Expert Verified by: David Chen, CFA

Accurately estimate your capital gains and tax liabilities for cryptocurrency trades. Our free crypto tax calculator helps you navigate the complexities of digital asset taxation by calculating profits, losses, and potential taxes based on your specific holding data and tax rates.

Purchase Price per Unit ($)

Selling Price per Unit ($)

Quantity (Q)

Total Transaction Fees ($)

Estimated Tax Rate (%)

Estimated Tax Owed

$0.00

Capital Gain: $0.00

Free Crypto Tax Calculator Formula:

$$Gain = (Selling\ Price \times Q – Fees) – (Purchase\ Price \times Q + Fees)$$ $$Tax\ Owed = Gain \times (Tax\ Rate \div 100)$$

Formula Source: IRS Official Guidelines | Investopedia Crypto Tax

Variables:

Purchase Price: The amount paid per coin or token at the time of acquisition (Cost Basis).
Selling Price: The market value per coin when you sold or traded the asset.
Quantity (Q): The total number of units involved in the transaction.
Total Fees: Sum of purchase commissions, network gas fees, and selling commissions.
Tax Rate: Your applicable capital gains tax bracket percentage.

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Bitcoin ROI Calculator Crypto Profit Calculator Ethereum Gas Fee Tool HODL Gains Tracker

What is Free Crypto Tax Calculator?

A free crypto tax calculator is an essential tool for investors to determine their tax obligations resulting from buying, selling, or trading digital assets. Since the IRS and other global tax authorities treat cryptocurrency as property, every trade is a taxable event that can trigger capital gains or losses.

Using this tool allows you to input your cost basis and exit price to see exactly how much profit you have realized. By accounting for transaction fees and your specific tax bracket, you can set aside the correct amount of funds for your annual tax filing.

How to Calculate Free Crypto Tax (Example):

Determine your Cost Basis: (Purchase Price × Quantity) + Purchase Fees.
Determine your Proceeds: (Selling Price × Quantity) – Selling Fees.
Subtract the Cost Basis from your Proceeds to find your Capital Gain.
Multiply the Capital Gain by your Tax Rate to find your tax liability.

Frequently Asked Questions (FAQ):

Is crypto-to-crypto trading taxable? Yes, trading one cryptocurrency for another is considered a sale of the first asset and is taxable based on its fair market value.

Can I deduct crypto losses? Yes, capital losses can be used to offset capital gains, and potentially up to $3,000 of ordinary income in certain jurisdictions.

What is the difference between short-term and long-term gains? Assets held for more than a year usually qualify for lower long-term capital gains tax rates.

Do I need to report a trade if I didn’t cash out to USD? Yes, the taxable event occurs at the time of the trade, regardless of whether you withdraw to a bank account.