Calculating Gains and Losses Accurately
The core purpose of any capital gains tool is to determine how much profit or loss resulted from each cryptocurrency transaction. This calculator applies a straightforward yet precise formula to every matched buy-sell pair.
For each portion of a sell matched to a prior buy, the gain or loss is calculated as the sell price minus the buy price, multiplied by the quantity involved.
The Basic Formula
Gain equals (sell price minus buy price) times quantity. When sell price exceeds buy price, the result is positive, indicating a profit. When sell price is lower, the result is negative, representing a loss.
Handling Losses
Negative results are fully supported and displayed clearly. Losses are aggregated separately for short-term and long-term categories, allowing you to see potential offsets.
Aggregation by Holding Period
- All individual gains and losses are summed within their respective categories.
- Short-term for holdings under one year.
- Long-term for one year or more.
The final summary shows total short-term and long-term gain or loss, giving a complete picture of taxable exposure.
Calculations use full precision internally before displaying results rounded to two decimal places for clarity. Even small errors can compound into significant tax discrepancies, especially with large volumes.
Whether realizing substantial profits or offsetting losses, users can rely on the calculator to reflect true financial outcomes based on actual buy and sell prices.
Accurate gain tracking supports better financial planning and regulatory compliance.