Ethereum Profit Calculator
Ethereum moved from proof-of-work to proof-of-stake in September 2022, cutting energy use by roughly 99.95%. It has no fixed supply cap, but EIP-1559 burns a portion of every transaction fee, so net issuance can be negative during periods of high activity.
How This Asset Works
- Consensus: proof-of-stake, 32 ETH to run a validator
- Issuance: variable, offset by the EIP-1559 fee burn
- Staking yield: typically 3–5% annually
- Finality: about 12 minutes (two epochs)
- Divisibility: 10^18 wei per ether
What You Can Calculate
- Profit/Loss: See gains or losses from your trades
- ROI: Calculate return on investment percentage
- Break-even Price: Know when you'll recover your investment
- Average Cost: Calculate your dollar-cost average
Using This Calculator
1. Enter your purchase price and quantity 2. Input the current or target price 3. Add any fees or transaction costs 4. Review your profit/loss analysis
The Risk Specific to This Asset
Staking yield is not free money: it carries slashing risk for validator misbehaviour, lock-up considerations, and — with liquid staking derivatives — smart contract risk on top. Ethereum also faces genuine competition from the layer-2s built on it, which capture fee revenue that would otherwise reach the base layer.
Risks Common to Every Crypto Asset
- Custody: losing a private key loses the asset permanently, with no recovery process
- Regulation: treatment varies by jurisdiction and changes with little notice
- Counterparty: an exchange balance is a claim on the exchange, not an asset you hold
- Volatility: 50%+ drawdowns are ordinary rather than exceptional in this asset class
Costs That Turn a Gain Into a Loss
| Cost | Typical | When it applies |
|---|---|---|
| Exchange fee | 0.1–1.5% | Both on buy and on sell |
| Spread | 0.05–1% | The gap between quote and fill |
| Network fee | $0.01–$50 | Per on-chain transaction |
| Withdrawal fee | Fixed per asset | Moving off the exchange |
| Conversion | 0.5–2% | Fiat in and out |
Volatility Is Not Symmetric
| Drawdown | Gain needed to recover |
|---|---|
| −10% | +11% |
| −25% | +33% |
| −50% | +100% |
| −75% | +300% |
| −90% | +900% |
Custody
"Not your keys, not your coins" is not a slogan — Mt. Gox, QuadrigaCX, Celsius and FTX all lost customer assets held on their platforms.
| Where | Control | Risk |
|---|---|---|
| Exchange | Theirs | Insolvency, freeze, hack |
| Hot wallet | Yours | Malware, phishing |
| Hardware wallet | Yours | Physical loss, seed exposure |
| Multisig | Shared | Complexity |
Tax Follows Every Disposal
In the US the IRS treats crypto as property, so selling, swapping one token for another and spending it are all taxable events, whether or not dollars moved. Cost basis must be tracked per lot, per wallet. Without records the default assumption is a zero basis, which makes the entire proceeds taxable.