Cost basis model

Crypto average price calculator

Calculate the fee-aware weighted average price, total units, and combined modeled cost for two crypto purchases with different sizes and prices.

Enter an existing position and one new purchase. The result weights each cost by its units and adds the entered fee only to the proposed purchase, so a fee already included in the existing basis is not counted twice.

No market feed is used. Every price, rate, fee, and balance comes from the values you enter.

Your inputs

Inputs and results stay in this browser. Values are capped to keep calculations finite and responsive.

Calculated result

Weighted average price
$48,043.50
Total units
2
Gross combined cost
$96,000.00
Fee on new purchase
$87.00
Total modeled cost
$96,087.00
Break-even before sell fee
$48,043.50

The calculation

Gross cost = existing units × existing basis + new units × new price
New purchase fee = new units × new price × fee rate
Total modeled cost = gross combined cost + new purchase fee
Weighted average = total modeled cost ÷ total units

Why a simple average is wrong

Before fees, adding two prices and dividing by two is only correct when both purchases contain exactly the same number of units. A new fee changes even that equal-size result. If one buy is larger, its execution price must also carry more weight. The modeled average therefore comes from total cash cost divided by total units.

This distinction matters when averaging down or adding after a rally. A small second order barely moves a large existing position, even if its price is far from the original entry.

How the fee-aware basis works

The existing average cost is treated as a carried-forward basis that already includes any historical fees. The selected fee rate applies only to the new purchase. It increases cash committed without increasing the entered token count, so the combined break-even price rises.

If your platform deducts fees in tokens, changes the received unit count, or rebates maker orders, calculate from the actual statement instead. The model assumes the entered new units are the units received.

Using the result with trade records

For a quick scenario, two purchase legs are enough. This output is not a tax basis calculation. Tax records may need every fill, disposal, transfer, fee asset, wallet, and identification choice. Keep the exchange export or verified ledger as the source of record.

You can consolidate several earlier fills into the first leg by using their existing total units and weighted average price, then enter a proposed new order as the second leg. That preserves the weighted calculation while making the tool useful for planning the next buy.

Worked example

Adding 0.75 units to an existing position

An existing 1.25 units at a $42,000 fee-inclusive basis carries $52,500 of cost. Another 0.75 units at $58,000 costs $43,500 before its new fee. A 0.2% fee adds $87, producing 2 total units, a $96,087 combined basis, and a $48,043.50 weighted average per unit.

Questions and answers

Is weighted average price the same as tax basis?

No. This calculator produces a planning average from the values entered. Tax basis can depend on transaction-cost and unit-identification rules that this tool does not apply.

Can I use this to average down?

Yes. Put the existing position in the first leg and the proposed purchase in the second. The output shows the new combined average price.

Does the calculator include a future selling fee?

No. It includes the fee on the new purchase only. A future selling fee depends on the exit price and venue, so use the profit calculator for full round-trip math.

Primary references

Method and sources

The formulas run only on your inputs. These references support the definitions and risk notes on this page. They do not supply prices or predict a result.

  1. IRS digital asset transaction FAQs

    Explains current U.S. rules for transaction costs, basis, and identifying digital asset units. Those rules are outside this planning model.

  2. IRS digital assets guidance hub

    Collects current reporting guidance and separates rules for transactions before and after January 1, 2025.

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Research and risk disclosure

This calculator is an educational planning model, not investment, tax, or trading advice. It does not predict returns or execution. Crypto assets can lose their entire value. Confirm actual fills, fee schedules, funding, taxes, and account balances with the relevant provider before acting.

Built and checked by Michael Lip. Method assumptions are stated on this page so the result can be reproduced independently.