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Sell vs Borrow Calculator
Should you sell your investment and pay CGT, or borrow against it and keep the asset?
Compare your real tax bill vs total borrowing cost side-by-side, with Budget 2026-27 CGT rules built in.
Selling triggers a CGT event. Borrowing against your asset preserves ownership and defers tax indefinitely. This tool models both paths for your specific numbers so you can see which strategy costs less.
Educational tool only. Not financial or tax advice.
📢 Budget 2026-27: CGT Rules Are Changing
The 50% CGT discount will be replaced by an inflation-adjusted cost base + 30% minimum tax from 1 July 2027. Assets bought before 12 May 2026 are grandfathered. New builds may choose either rule. Full Budget breakdown →
Step 1: Which CGT regime applies to you? (drives the “sell” leg below)
Investment Details
Crypto-backed loans (e.g. Ledn, Nexo) let you borrow against BTC/ETH without selling. Typical LTV: 30-50%. Watch liquidation risk if price drops sharply.
Used to determine 12-month holding period and CPI indexation period
Unapplied losses from prior years — reduce the net capital gain before tax is calculated
Total investment value today
Educational input only (not a forecast). E.g. what if there's a 50% correction?
Used to determine your marginal tax rate
How much liquidity do you need?
8-15% typical for crypto-backed loans
Results & Comparison
Enter your details and click “Calculate Scenarios” to see results
How the Comparison Works
The tool computes two paths for the same liquidity need. Selling pays CGT immediately but ends ongoing risk. Borrowing avoids CGT but accrues interest and margin-call risk.
Sell path
- Select your CGT regime (pre-budget, new build, or post-budget)
- Calculator shows your tax bill under old and new rules
- Net proceeds after CGT are your liquidity
- Asset is gone; no future upside or ongoing holding cost
Borrow path
- Enter loan amount, term, and expected interest rate
- Calculator shows total interest cost and monthly repayment
- Margin-call threshold shown for collateral-backed loans
- Asset stays in your portfolio; you keep future upside and the CGT clock running
This is not a recommendation
Borrowing against an asset introduces leverage risk. Margin calls, rising interest rates, and asset price drops can compound losses. This calculator is an educational illustration. Always consult a licensed financial adviser before using leverage.
Frequently Asked Questions
When is borrowing against an asset better than selling?
Borrowing avoids a CGT event. If your CGT bill is higher than the total interest cost over your intended borrowing period, borrowing may preserve more wealth. This depends on your asset type, LTV ratio, interest rate, and applicable CGT regime.
What assets can I borrow against in Australia?
ASX shares and ETFs via margin loans (major banks and brokers), investment property via equity release or LOC, and major crypto (BTC/ETH) via specialist lenders such as Ledn or Nexo. Altcoins and physical gold/silver have very limited lending options in Australia.
Is borrowing against an investment tax-deductible?
Interest on borrowings used for income-producing investments is generally tax-deductible in Australia. For example, margin loan interest against a share portfolio used to earn dividends is deductible. The calculator shows the potential tax deduction benefit. Always confirm with a registered tax agent.
This calculator is for educational purposes only. Results are illustrative and do not constitute financial, tax, or legal advice. Ripper Wealth is not a licensed financial adviser. Borrowing against investments involves significant risk including margin calls, forced asset sales, and compounding losses. Always consult a registered financial adviser and tax agent for advice specific to your situation. CPI data sourced from ABS 6401.0.
Just want to calculate CGT without the borrow comparison?
Use the pure CGT Calculator for a clean old-vs-new regime comparison.