Methodology & data sources
Transparency is the core of our E-E-A-T: this page documents the formulas behind every calculator and the official sources for the tax parameters we use, all reviewed as of 14 June 2026.
How calculations work
Every calculator runs entirely in your browser using standard, published formulas that are shown on each tool page. We do not store, transmit or see the numbers you enter. Key formulas:
- Profit/loss: net proceeds (after sell fee) minus total cost (incl. buy fee).
- DCA: total invested ÷ coins accumulated = average cost per coin.
- Average cost: Σ(quantity × price + fee) ÷ Σ quantity (weighted average / pooling).
- Staking: compounded balance = amount × (1 + APY)^(days ÷ 365); simple = amount × (1 + APY × years).
- Capital-gains tax: country-specific 2026 rules (below) applied to gain = proceeds − cost basis.
- Position size: (account × risk%) ÷ |entry − stop| coins.
2026 tax rules used by the estimator
| Country | Authority | Rule applied |
|---|---|---|
| United States | IRS | Crypto held 12 months or less is a short-term gain taxed at your ordinary income rate (10%-37%). Held longer than 12 months it is a long-term gain taxed at the preferential 0% / 15% / 20% rates. High earners may also owe the 3.8% Net Investment Income Tax. |
| United Kingdom | HMRC | There is no separate long-term rate. After the £3,000 (2025/26) annual exempt amount, gains are taxed at 18% if you are a basic-rate taxpayer or 24% if your income pushes the gain into the higher-rate band. |
| Canada | CRA | Only 50% of a capital gain is included in taxable income (the proposed two-thirds inclusion rate was cancelled in March 2025). The included half is taxed at your marginal federal rate (provincial tax is extra and not shown here). |
| Australia | ATO | Hold a crypto asset longer than 12 months as a resident investor and the 50% CGT discount halves the taxable gain. The remaining gain is added to your income and taxed at your marginal rate (Medicare levy not included). |
The estimator covers the common single-individual investor case. It excludes US state tax and the 3.8% Net Investment Income Tax, Canadian provincial tax and Australia's Medicare levy.
Authoritative data sources
| Source | Refresh cadence | License |
|---|---|---|
| IRS — Topic 409, Capital Gains and Losses | annual | Public domain (US Gov) |
| HMRC — Capital Gains Tax | annual | Open Government Licence v3.0 |
| CRA — Cryptocurrency guide for individuals | annual | Crown copyright |
| ATO — Crypto asset investments | annual | CC BY 4.0 |
On crypto prices
To keep the site fast and deterministic we do not fetch live prices. Where a price is needed, you type the current one yourself; any reference figures we show are clearly dated and illustrative only.
Limitations
Figures are estimates for general information and may lag the underlying rules or contain errors. Tax law changes and depends on your personal circumstances. Always verify against the primary source and consult a qualified professional. See our disclaimer.
Last updated: 2026-06-14