Capital Gains Calculation
Accurate cost basis is critical. Get it wrong, and you'll either overpay tax or face penalties.
Cost Basis: Weighted Average Method
South Africa uses the weighted average cost method (WACM). When you sell, your cost is the average of all buys.
Example:
- Buy 1 BTC at R100k
- Buy 2 BTC at R110k
- Sell 1.5 BTC at R120k
Weighted cost = (1×100k + 2×110k) / 3 = R106,667
Gain per unit = R120k - R106,667 = R13,333
Total gain = 1.5 × R13,333 = R20,000
Calculating Gains
Gain = Selling Price - Cost Basis
Include all costs: exchange fees, transfer fees, conversion fees.
SA Tax Liability
Taxable gain = Total gain × 40% (inclusion rate)
Tax owed = Taxable gain × Your marginal tax rate
After R40,000 annual exemption:
- 18% bracket: 40% × 18% = 7.2% effective
- 26% bracket: 40% × 26% = 10.4% effective
- 41% bracket: 40% × 41% = 16.4% effective
Using the CGT Calculator
Our calculator handles weighted average automatically. Input your buy/sell transactions, and it computes your liability.