Published: 2026-01-12
Crypto Average Cost Basis: The Formula and Worked Examples
Your average cost basis tells you your real break-even price. Here's the formula, two worked examples with numbers, and why fees change the math.
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Average cost basis is the average price you paid per coin, across all your purchases.
It tells you your break-even point. Above it, you're in profit. Below it, you're at a loss.
- Total spent divided by total coins owned
- Includes every purchase, not just the last one
- Used to measure real profit or loss
The Basic Formula
Average cost basis = Total amount spent ÷ Total coins purchased.
This is simple with one purchase, but changes every time you buy again at a different price.
- Add up all money spent, including fees
- Add up all coins received
- Divide spent by coins received
Worked Example: Two Purchases
Buy 1: $1,000 for 0.02 BTC. Buy 2: $500 for 0.008 BTC.
Total spent: $1,500. Total coins: 0.028 BTC. Average cost basis: $53,571 per BTC.
- Buy 1: $1,000 ÷ 0.02 BTC = $50,000/BTC
- Buy 2: $500 ÷ 0.008 BTC = $62,500/BTC
- Combined average: $1,500 ÷ 0.028 BTC = $53,571/BTC
Why Fees Change Your True Average
If each purchase carries a 0.1% fee, that money didn't buy coins. It should count as part of your cost.
Ignoring fees makes your average look lower than it really is, which overstates your actual profit.
- Add trading fees to your total spent
- A 0.1% fee on 10 buys adds up over time
- Lower-fee exchanges keep your true average lower
Keeping Track Going Forward
Every new purchase changes your average. Recalculate after each trade if you're tracking closely.
A simple spreadsheet with date, amount spent, coins received, and fee works well for most people.
- Log every purchase with date and fee
- Recalculate average after each buy
- Compare exchanges to reduce fee drag over time
Cost Basis Checklist
Use this list to make sure your average cost basis is accurate.
Small omissions here quietly distort your real profit picture.
- Included every single purchase, not just recent ones
- Added trading fees to total spent
- Used the same currency unit throughout
- Recalculated after your most recent buy
- Double-checked coin amounts against your wallet or exchange balance
FAQ: Average Cost Basis Questions
Here are quick answers to common questions about tracking your average.
These apply whether you're tracking one coin or several.
- Does selling change my average cost basis? No, selling doesn't change the average of remaining coins in most simple methods.
- What if I bought on different exchanges? Combine all purchases into one running total for an accurate average.
- Is average cost basis the same as break-even price? Essentially yes, when fees are included correctly.
- Do I need software to track this? A simple spreadsheet works fine for most individual investors.
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