Free calculator · Includes 2027 CGT impact
Sell Shares or Borrow? Fund a Purchase Calculator
Making a big purchase — a car, a deposit, a renovation? Compare selling investments, taking a loan, and paying cash side by side: the CGT bill, the compounding you'd give up, and the interest you'd pay.
Compare over
Cost base — sets the capital gain
If selling, sell…
The CGT rules change on 1 July 2027
If borrowing
8.0% p.a. — typical advertised midpoint (June 2026)
Modelled net position after 10 years
Sell investments
$309k
Sell $42,735 to net $40,000
CGT bill $2,735
Growth forgone $41,331
Borrow
$322k
$811/month for 5 years
Total interest $8,663
Portfolio stays invested
Pay cash
Highest$328k
Savings drop to $20,000
Interest forgone $25,156
Portfolio stays invested
Under these assumptions, the highest-ending option finishes $5,630 ahead of the next. Small changes to the rates above can change the order.
Net position over time
This tool provides factual information and general educational content only. It is not financial product advice and does not take into account your personal objectives, financial situation or needs. All figures are estimates based on the details you entered and rely on assumptions that may not reflect your circumstances or actual outcomes. Assumes a 7% p.a. portfolio return, CGT on the modelled sale only (tax embedded in holdings you keep is not modelled), and loan repayments costed at your savings rate. Before acting on this information, consider whether it suits your circumstances and seek advice from a licensed financial adviser, accountant or registered tax agent.
Want this with your real portfolio?
Track your holdings in Clarow and run the same comparison on your actual parcels — with the CGT bill computed from what you really paid.
See how the numbers compare →How the comparison works
All three strategies are measured against the same baseline: your modelled net position (portfolio plus savings, minus any loan still owing) at the end of the timeframe you choose. Selling removes money from the portfolio and triggers CGT — the sale is grossed up so the after-tax proceeds cover the purchase. Borrowing keeps the portfolio invested but adds loan repayments, each costed at your savings rate. Paying cash keeps the portfolio intact and forgoes the interest your savings would have earned.
The CGT model follows the current Australian rules: a 50% discount on gains for assets held over 12 months and sold before 1 July 2027, and CPI indexation with a 30% minimum on gains from that date — including Treasury's straight-line split for assets that straddle the changeover. CGT on holdings you keep is not modelled, since it isn't payable until they are sold.
Frequently asked questions
Should I sell shares to buy a car or house deposit?
It depends on three numbers: the capital gains tax you'd pay on the sale, the return your portfolio would have earned if you stayed invested, and the interest rate you'd pay if you borrowed instead. Selling triggers CGT and permanently removes that money from compounding. Borrowing keeps the portfolio working but adds interest. Paying cash avoids both but drains your savings buffer. The calculator models all three side by side over your chosen timeframe so you can see how the trade-off plays out for your figures.
How much capital gains tax will I pay if I sell shares?
If you sell before 1 July 2027 and have held the shares for more than 12 months, only 50% of the gain is taxable at your marginal rate. From 1 July 2027, the 50% discount is replaced by CPI indexation of your cost base with a 30% minimum tax on the gain. For assets bought before but sold after the change, Treasury's straight-line split applies part of each rule. The calculator handles all three regimes automatically based on when you bought and when you plan to sell.
Is it better to sell investments before or after 1 July 2027?
The 2027 CGT changes alter the tax bill on the same sale. For long-held assets with large gains, the 50% discount available before 1 July 2027 often produces a lower tax bill than the indexation-plus-30%-floor rules that follow — but the outcome depends on your gain size, holding period and income. The calculator's sell-timing toggle shows the bill under both regimes so you can compare them directly.
What does it cost to sell more shares than the purchase amount?
When you sell shares to fund a purchase, the CGT comes out of the proceeds — so you need to sell more than the purchase price to be left with the full amount. For example, netting $40,000 might require selling $43,000 of shares once tax is accounted for. The calculator grosses up the sale automatically and shows both figures.
What is the opportunity cost of selling instead of borrowing?
Money removed from a portfolio stops compounding. At a long-run 7% p.a. return, $40,000 sold today is roughly $79,000 of portfolio value forgone over 10 years. Whether borrowing beats selling comes down to comparing that forgone growth (plus the CGT bill) against the total interest on the loan. When loan rates are well below expected portfolio returns, borrowing tends to finish ahead; when rates are high, selling or paying cash often does.