Tool 12 · Capital gains tax
What's the tax on selling up?
Sell an investment for more than you paid and the profit may be taxable. Enter the numbers and your own tax rate to see the bill, what you keep, and your effective rate. Rules vary by country — this is the back-of-the-envelope version.
—
What you sell the asset for (net of selling costs).
What you paid for it, plus buying costs.
Annual exemption before CGT applies (varies by country).
The rate that applies to you — check your local rules.
Pro features. Spread the sale across tax years to use more allowances, read insights, compare, and export.
Pay less, legally
Refine the model
Selling in chunks across tax years can use the allowance more than once.
Year-by-year (if spread)
Compare spreading the sale
| Sell over | Total tax | You keep |
|---|
How capital gains tax works
Capital gains tax (CGT) is a tax on the profit when you sell an asset — shares, funds, a second property, crypto — for more than you paid. The taxable amount is the gain (sale value minus original cost), often reduced by an annual tax-free allowance. Whatever's left is taxed at your CGT rate, which depends on your country, income and the type of asset.
Because rates and allowances differ everywhere and change often, this calculator stays deliberately generic: you enter your own rate and allowance, and it does the arithmetic — gain, taxable amount, tax owed, what you keep, and your effective rate on the whole gain. It's a quick estimate to help you plan, not tax advice; always confirm the current rules for your situation.
Capital gains tax is easy to forget until a sale lands you with an unexpected bill. The key thing to understand is that you’re taxed on the gain, not the whole sale price — and usually only on the part above your tax-free allowance. That means your effective rate on the total profit is often lower than the headline rate, and with a little planning you can lower it further. This calculator lays out the arithmetic so there are no surprises at tax time.
A worked example
Sell for €30,000 · originally cost €18,000 · €3,000 allowance · 20% rate
The gain is €12,000; after the €3,000 allowance, €9,000 is taxable, so the tax is €1,800 and you keep €28,200. That’s an effective rate of just 15% on the full gain, not 20%, thanks to the allowance. Spread the sale across two tax years to use the allowance twice and the tax drops to €1,200 — a €600 saving for a bit of timing.
Things to keep in mind
- Rules vary hugely by country and change often. Rates, allowances and reliefs differ everywhere; this tool is generic, so enter the figures that apply to you and confirm the current rules locally.
- Use your allowance every year. Many systems give a yearly tax-free amount that doesn’t carry over — spreading disposals across tax years can use it more than once (the Pro feature models this).
- Losses can offset gains. Selling a losing investment in the same year can reduce the gain you’re taxed on. Keep records of both.
- Tax-sheltered accounts sidestep it. Investments held in ISAs, pensions or their local equivalents are often exempt from CGT entirely — usually the first place to invest.
Frequently asked questions
Do I pay tax on the whole sale amount?
No — only on the gain (sale value minus what you paid), and often only on the part above your annual allowance. Returning your original capital is not taxed. That’s why your effective rate on the total gain is usually below the headline rate.
When is the tax actually due?
Generally when you realise the gain by selling — not while you simply hold an asset that’s risen in value. Timing a sale (for example, into a new tax year to use a fresh allowance) is a common, legitimate way to reduce the bill. Check your local filing deadlines.
What rate should I enter?
Use the CGT rate that applies to you locally — it often depends on your income band and the asset type. Many countries have separate rates for property vs shares. If unsure, check your tax authority's guidance or ask an accountant.
This calculator is a general educational estimate, not tax advice. Capital gains rules vary by jurisdiction and change frequently — always verify the current rules for your situation or consult a qualified tax professional.
Can I reduce the tax legally?
Common approaches include using your annual allowance each tax year (so spreading a large sale across years can help), offsetting losses against gains, and holding assets in tax-sheltered accounts. The Pro "spread the sale" feature shows the allowance effect.
What if I made a loss?
If you sell for less than you paid, there's no gain and no CGT. In many systems you can record the loss and offset it against other gains — this tool will flag a loss rather than show tax.