Crypto Cost Basis (FIFO) Calculator

Frequently Asked Questions

How does FIFO cost basis work?

First-In-First-Out matches the coins you sell against your earliest purchase lots. Cost basis = the price you paid for those oldest lots; realized gain = proceeds − that basis. This is cost-basis accounting, not a tax estimate.

How is this different from the Crypto Tax Calculator?

This tracks lots and computes basis/proceeds/gain. The Crypto Tax Calculator estimates the federal tax owed on gains and income. Use this to get the numbers, that one to estimate the bill.

Is FIFO required for crypto?

The IRS default is FIFO, but specific identification is allowed if you can document which lots you sold. FIFO often raises taxable gain in a rising market. This is general info, not tax advice.

What about fees?

Acquisition fees add to basis and disposal fees reduce proceeds, lowering the gain. Track them per lot for accuracy; consult a crypto-savvy accountant for filing.

What changed for crypto cost basis in 2025?

Two big changes. First, IRS Rev. Proc. 2024-28 ended universal (cross-wallet) basis pooling as of January 1, 2025: you must now track cost basis per wallet or account, not across all holdings at once. Second, brokers started issuing Form 1099-DA for the 2025 tax year (delivered in early 2026), reporting proceeds and, increasingly, basis. Keep per-wallet records that match any specific-identification choices made at or before each sale so your return reconciles with the 1099-DA.

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Estimates for informational purposes only.

Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How This Calculator Works

This is a lot-accounting tool - it answers "which coins did I sell, and what did they cost me?", not "how much tax do I owe?". Under FIFO (First-In, First-Out), a disposal is matched against your oldest unsold purchase lots first. Enter each buy as a quantity and the price paid (oldest at the top), then the quantity sold and the sale price. The engine walks the lots in purchase order, drawing from each until the sale quantity is filled: from every lot it takes min(lot remaining, quantity still to fill). Cost basis = Σ(coins taken from a lot × that lot's purchase price). Proceeds = sell qty × sell price, and realized gain/loss = proceeds − cost basis. The coins not consumed remain as open lots, and the tool reports their blended average cost so you know the break-even on what you still hold.

Worked Example

Lot 1: 1 BTC @ $20,000. Lot 2: 0.5 BTC @ $30,000. You sell 1 BTC @ $40,000. FIFO consumes Lot 1 entirely first because it filled the full 1 BTC: cost basis = 1 × $20,000 = $20,000. Proceeds = 1 × $40,000 = $40,000. Realized gain = 40,000 − 20,000 = $20,000, a +100% gain on basis. Lot 1 is exhausted; Lot 2 is untouched, so remaining = 0.5 BTC at $30,000 average cost. Note how method choice matters: under LIFO this same sale would draw 0.5 BTC from Lot 2 ($30,000) and 0.5 from Lot 1 ($20,000) for a $25,000 basis and only a $15,000 gain - the trade is identical, the accounting is not.

Real-World Use

Lot tracking is the backbone of how exchanges, accountants, and portfolio software determine what a sale actually earned. After a partial sale, the remaining average cost is your true open-position break-even - the number that tells you whether trimming more is still a gain or now a loss, and informs whether to harvest gains or hold. Tagging each lot with its acquisition date also makes the short-term vs. long-term holding split visible, which is the input a separate tax estimator would then apply rates to. This tool stops at the basis figure on purpose.

Common Mistakes

Confusing cost basis with tax owed. This is the central distinction: this calculator computes basis and realized gain, not tax liability. Use a dedicated crypto tax estimator for the latter - rates depend on holding period, income, and jurisdiction this tool deliberately does not model.

Forgetting fees adjust basis. Buy-side fees increase cost basis; sell-side fees reduce proceeds. Omitting them overstates the gain.

Mixing up lot methods. FIFO, LIFO, HIFO, and specific-identification can produce materially different gains on the same trades; you must apply one consistently and within what your jurisdiction allows.

Treating wallet transfers as disposals. Moving your own coin between your own wallets is not a sale and creates no basis event - only enter actual buys and sells.

Limitations

This models a single coin under strict FIFO across up to eight lots, and ignores trading fees, airdrops, hard forks, staking/mining income basis, gifts, and wash-sale-style rules. It does not order lots by date you supply - it consumes them in the entry order, so enter oldest first. Jurisdictions differ on which lot methods are mandated or permitted. Treat the output as an educational estimate of cost basis and realized gain, not financial or tax advice - consult a qualified crypto tax professional before filing.

Crypto Cost Basis (FIFO) Calculator

Frequently Asked Questions

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