Canada ROI Calculator
This calculator estimates Return on Investment, CAGR, and Capital Gains Tax for an investment disposed of by a Canadian resident in the latest tax year. Calculations apply the CRA’s 50% inclusion rate to the gain, then the combined federal and provincial marginal rate for the selected province.
Enter Buy and Sell Prices
Input the purchase price, acquisition costs, sale price, and disposal costs in CAD.
Select Province and Income
Choose your province of residence and enter your annual taxable income for the marginal rate.
See Your Full Return
Results update automatically. View CAGR, included capital gain, marginal tax, and after-tax ROI.
Canada ROI Calculator
Return on Investment · CRA capital gains 2026
Buy Price
Sell Price & Income
Holding Period & Tax
Your Return
ROI · After-tax position · Benchmarks
ROI Summary
Based on a total cost base of CAD 51,000 and net sale proceeds of CAD 74,200, the capital gain is CAD 23,200.
The total ROI is 0% over 5 years, with a CAGR of 0% p.a. After estimated tax, the after-tax ROI is 0%.
Capital Gains Impact on ROI
Per the CRA, only 50% of a capital gain is taxable (the inclusion rate). The taxable half is added to income and taxed at the marginal rate. This calculator uses each province's top combined federal + provincial rate, so the capital gains effective rate is half of that.
Effect of the 50% Inclusion Rate
Capital Gains by Entity (CRA 2026)
| Holder | Inclusion Rate | Taxed At |
|---|---|---|
| Individual | 50% | Personal marginal rate |
| Trust (most) | 50% | Top trust rate (or flowed to beneficiaries) |
| Corporation | 50% | Corporate rate; non-taxable half to CDA |
Break-even & Target Sell Price
Based on the cost base and disposal costs, what sale price is needed? Enter a target ROI below, or see the prices required to break even, beat inflation, or beat the Bank of Canada policy rate.
How ROI Is Calculated
Return on Investment measures the percentage gain or loss on an investment relative to its full cost. The calculation captures every dollar in and every dollar out — purchase price plus acquisition costs on the way in, sale proceeds minus disposal costs on the way out, plus any income earned along the way.
Total ROI (period return)
Gross ROI compares total return to the cost base. Useful for a single snapshot of performance.
Total Return = Capital Gain + Income During Hold
Example: CAD 50,000 + CAD 1,000 cost; sold CAD 75,000 − CAD 800 = CAD 74,200 net. Capital Gain CAD 23,200 → ROI 45.5%.
CAGR (annualised return)
Compound Annual Growth Rate converts the total return into a consistent yearly rate, so investments held for different lengths of time can be compared on the same basis.
Example: CAD 51,000 grows to CAD 74,200 over 5 years → CAGR ≈ 7.8% p.a.
What Is (and Isn't) Subject to Capital Gains Tax
Per the CRA, when you dispose of a capital property for more than its adjusted cost base, you realise a capital gain — 50% of which is taxable. Some properties are exempt, most notably a principal residence.
Subject to Capital Gains Tax
- ✓Stocks, ETFs and mutual funds in a non-registered account
- ✓Real estate that is not your principal residence (rentals, cottages)
- ✓Cryptocurrency held as an investment
- ✓Listed personal property and collectibles over CAD 1,000
- ✓Business assets and qualifying small business shares
Exempt or Sheltered
- –Principal residence (Principal Residence Exemption)
- –Gains inside a TFSA (tax-free)
- –Gains inside an RRSP / RRIF (tax-deferred)
- –Personal-use property sold for CAD 1,000 or less
- –Qualifying gains within the Lifetime Capital Gains Exemption
Capital Gains Effective Rates by Province 2026
Because only 50% of a gain is taxable, the effective capital gains rate is half the combined federal + provincial top marginal rate. These are the top-bracket effective rates; lower incomes pay less.
| Province / Territory | Top Marginal Rate | Capital Gains Effective Rate |
|---|---|---|
| Newfoundland & Labrador | 54.80% | 27.40% |
| Nova Scotia | 54.00% | 27.00% |
| Ontario | 53.53% | 26.76% |
| Quebec | 53.31% | 26.65% |
| British Columbia | 53.50% | 26.75% |
| New Brunswick | 52.50% | 26.25% |
| Prince Edward Island | 52.00% | 26.00% |
| Manitoba | 50.40% | 25.20% |
| Alberta | 48.00% | 24.00% |
| Yukon | 48.00% | 24.00% |
| Saskatchewan | 47.50% | 23.75% |
| Northwest Territories | 47.05% | 23.53% |
| Nunavut | 44.50% | 22.25% |
Benchmarking Against Inflation & the Policy Rate
A positive ROI in cash terms does not necessarily mean a positive real return. Two benchmarks help frame whether an investment delivered genuine value: cumulative inflation (preserves purchasing power) and the Bank of Canada policy rate (the near-risk-free return available on cash deposits).
Inflation — StatCan CPI
Cumulative inflation measures how much prices have risen over the holding period. An after-tax ROI below cumulative inflation means a real-terms loss of purchasing power.
Latest CPI: 2.8% in April 2026 (up from 2.4% in March) (StatCan / BoC).
Bank of Canada Policy Rate
The overnight policy rate is the near-risk-free benchmark for the Canadian dollar. The equivalent cumulative return shows what a cash deposit at this rate would have earned over the same period.
Current policy rate: 2.25%, held on 29 April 2026 (BoC).
Frequently Asked Questions
Common questions about ROI calculation, capital gains tax in Canada, adjusted cost base, and how different investment types are treated — answers verified against official CRA and Bank of Canada guidance.
Important Disclaimer
For educational and informational purposes only. This calculator produces estimates of Return on Investment (ROI), Compound Annual Growth Rate (CAGR) and Canadian capital gains tax based on the inputs provided and Canada Revenue Agency (CRA) 2026 settings. Only 50% of a capital gain is taxable (the inclusion rate); a proposed increase to 66.67% was cancelled in March 2025, so the rate remains 50% for 2026. The taxable half is added to income and taxed at the marginal rate. To produce a conservative estimate, this tool applies each province's top combined federal and provincial marginal rate — the actual rate depends on total income, and lower incomes are taxed at lower rates. Benchmark figures use the Statistics Canada Consumer Price Index of 2.8% (April 2026, up from 2.4% in March) and the Bank of Canada (BoC) policy interest rate of 2.25%, held on 29 April 2026. Both figures change from time to time and should be verified against the official source.
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (CRA, Bank of Canada, Statistics Canada), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Tax rates, inclusion rates, exemptions and benchmark rates change over time — figures shown may be out of date. Individual circumstances such as net capital losses carried back or forward, the Principal Residence Exemption, the Lifetime Capital Gains Exemption, the average-cost (adjusted cost base) rule, the superficial loss rule, capital cost allowance recapture, the alternative minimum tax, TFSA and RRSP tax sheltering, Quebec's separate provincial return, or any other relief not captured by the inputs may materially affect actual tax and after-tax returns.
Not financial or tax advice. Information provided is general in nature only and does not take into account personal circumstances, objectives, or risk tolerance. Results do not constitute financial advice, tax advice, or investment advice, and use of this calculator does not create an advisory relationship. Before relying on any figure shown, obtain advice from a qualified accountant, a registered financial advisor, or directly from the CRA.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with the relevant authority before relying on them. Use of this calculator is subject to our Terms of Use.
Enjoying Money Snap?
This calculator is 100% free to use. Get started now or share it with friends who might find it helpful!