How to Calculate Bitcoin Profit & Loss (Formula + Free Tool)

Use total amounts, not just prices per coin.

Realized P&L = (BTC sold × sale price per BTC − selling costs) − basis of BTC sold.

Unrealized P&L = BTC held × reference price − remaining basis.

Example: 0.5 BTC bought at $80,000 per BTC costs $40,000 before fees. At a $100,000 reference price, it is worth $50,000: a $10,000 paper gain. These are example prices. Do not subtract an acquisition fee again if basis already includes it. A partial sale uses only the sold units’ basis.

Cost basis records the amount paid for a purchase. If 0.1 BTC costs $5,000 plus a $25 acquisition fee paid separately, basis is $5,025. If $5,000 is an all-in budget and the fee is deducted from it, you receive less BTC; do not add the fee again.

FIFO, LIFO and HIFO change which lot’s cost is assigned to a sale, not total portfolio cost. These are mathematical comparisons, not freely available tax choices everywhere. Under US rules, adequate identification matters; otherwise FIFO generally applies within the wallet or account. LIFO/HIFO need valid timely specific identification where permitted.

A rise while you hold BTC is an unrealized gain. Under US investment rules, selling, exchanging or spending realizes a gain or loss, even without withdrawing cash to a bank. Simply buying or holding does not itself realize a gain.

Receiving BTC for work or mining may create income before a sale. IRS guidance is US guidance, not a rule for every country. After a partial sale, retain separate records for sold units and the remaining balance.

For a few buys, a spreadsheet can work: keep date/time, BTC received, cash paid, currency, acquisition fee, wallet/account and transaction ID. Link each sale to the relevant purchase lots.

The P&L calculator models fees, ROI and break-even price; it is not a tax return or full tax-lot reconciliation service. Import tools can help with many accounts, but check matches. Missing transfers can look like sales or zero-basis deposits. Reconcile ending balances against actual wallets and exchange statements.

• Double-counting fees: include acquisition costs once; subtract sale charges once.
• Adding every transfer fee to tax basis: record separately; treatment depends on the transaction and law. BTC paid for a service can itself be a disposal.
• Using average portfolio cost for every tax sale: valid lot selection can differ from a performance average.
• Skipping small buys: each DCA purchase needs a record.
• Treating ROI as take-home cash: fees and tax can reduce it.

Read the tax guide before relying on loss harvesting. A lower gain shown by a method does not prove it is allowed or best.

Three purchases in one wallet, excluding fees. These are example prices.

Sell 0.20 BTC at $110,000 per BTC: $22,000 proceeds before charges.

Total original basis is always $23,000. A smaller gain now leaves less basis later. LIFO and HIFO match here, but not always. Holding periods can also change tax. Notice 2026-20 extends temporary identification relief through December 31, 2026 for covered US broker transactions; timely records or standing instructions are still required. It does not allow choosing favorable lots after selling.

ROI = profit ÷ cost × 100.

CAGR = ((ending value ÷ starting value)^(1 ÷ years) − 1) × 100.

Doubling has the same total ROI but very different yearly meaning. Neither measure shows the drops along the way. This CAGR formula assumes no extra deposits or withdrawals. For recurring buys, use a method that accounts for cash-flow timing; do not divide total ROI by years.

The acquisition fee is paid on top; all 0.10 BTC is later sold.

Save confirmations showing whether fees were cash or BTC. Keep self-transfers separate. For partial sales, assign only the selected lot’s proportional basis. Preserve original exports alongside your worksheet so every total can be checked.