Canadian ROI Calculator
Work out your return on investment in CAD — total and annualised returns, compared against inflation and the Bank of Canada policy rate.
Canada ROI Calculator
Return on Investment · CRA capital gains 2026
Buy Price
Sell Price & Income
Holding Period & Tax
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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 45.49% over 5 years, with a CAGR of 7.79% p.a. After estimated tax of CAD 6,209 (Ontario, at the top combined marginal rate — lower incomes pay less), the after-tax ROI is 33.31%.
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.
SharesightCapital gains on the Adjusted Cost Base
- Capital gains report using the Adjusted Cost Base, per CRA rules
- Short-term and long-term gains and losses broken down
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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.
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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 realize 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% |
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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.
Return on Investment (ROI) measures the total percentage gain or loss on an investment relative to its full cost. It is calculated as: ROI = (Net Profit ÷ Total Cost Base) × 100.
For example, if CAD 51,000 (including costs) was paid for an asset and it was sold for net CAD 74,200, the ROI is (CAD 23,200 ÷ CAD 51,000) × 100 = 45.5%. ROI does not account for how long the investment was held — use CAGR for time-adjusted comparisons.
CRA — Capital Gains (T4037)CAGR stands for Compound Annual Growth Rate. While ROI measures total percentage gain over the full holding period, CAGR converts this into a consistent annual rate — making it easier to compare investments held for different lengths of time.
The formula is: CAGR = (Final Value ÷ Cost Base)^(1 ÷ Years) − 1. For example, a 47% ROI over 5 years equals a CAGR of approximately 8.0% per year, while the same 47% ROI over 10 years is only 3.9% per year.
Bank of Canada — Policy RateThere is no universal benchmark, but two common reference points are: the Bank of Canada policy rate (2.25% as at 10 June 2026) as a near risk-free baseline, and the Statistics Canada CPI inflation rate (2.8% in April 2026) as the minimum needed to preserve purchasing power.
An investment that beats both benchmarks on an after-tax, annualised basis (CAGR) is generally considered to have delivered a positive real return. The S&P/TSX Composite has historically returned around 6–9% per year including dividends (index-provider data, not an official source), before tax, though past performance is not a guide to the future.
Bank of Canada — Policy RateAfter-tax ROI is the return after capital gains tax has been deducted. In Canada only 50% of a capital gain is taxable, but that taxable half is added to income and taxed at the marginal rate — so the real return kept can be meaningfully lower than the headline figure.
After-Tax ROI = (After-Tax Profit ÷ Total Cost Base) × 100. Holding investments inside a TFSA removes the tax entirely, and an RRSP defers it, which is why registered accounts materially change after-tax ROI.
CRA — Capital GainsInflation erodes purchasing power over time. The Statistics Canada CPI inflation rate was 2.8% in April 2026. An ROI that does not exceed cumulative inflation over the holding period represents a real-terms loss in purchasing power — even if it appears profitable in cash terms.
This calculator compares the after-tax ROI against both cumulative inflation and the cumulative Bank of Canada policy rate so real return is visible alongside the headline figure.
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.
Cumulative Inflation = (1 + 0.031)years − 1
Latest CPI: 3.1% in the Year to September 2026 (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.
Cumulative Cash Return = (1 + 0.0225)years − 1
Current policy rate: 2.25%, held on 10 June 2026 (BoC).
Bank of Canada — CPIThe break-even sell price is the minimum amount needed to recover total outlay — including purchase price, acquisition costs, and disposal costs — with zero profit. It is calculated as: Break-even = Adjusted Cost Base + Disposal Costs.
Knowing the break-even price provides a floor on acceptable sale prices, and helps frame how far an investment is above or below recovery at any given moment.
CRA — Capital GainsAccording to the CRA, when you dispose of a capital property (such as stocks outside a registered account, a rental property, or cryptocurrency) for more than its adjusted cost base, you realize a capital gain.
Only 50% of the gain is taxable — this is the inclusion rate. The taxable half is added to your income on line 12700 and taxed at your marginal rate. Gains inside a TFSA, RRSP or RRIF are not taxed this way.
CRA — Capital GainsThe inclusion rate is the proportion of a capital gain that is taxable. For 2026 it is 50% — only half of a gain is added to taxable income.
A proposed increase to 66.67% (announced in the 2024 federal budget) was deferred and then cancelled in March 2025, so the rate remains 50%. The non-taxable half is genuinely tax-free for individuals.
Separately, the Lifetime Capital Gains Exemption (LCGE) increased to CAD 1,250,000 (from CAD 1,016,836) effective 25 June 2024 for dispositions of qualified small business corporation shares and qualified farm or fishing property. Indexation resumes in 2026.
CRA — Capital GainsThe calculation has four steps:
- (1) Calculate the gain: Proceeds of disposition − Adjusted Cost Base − outlays and expenses.
- (2) Apply any allowable capital losses.
- (3) Multiply the net gain by the 50% inclusion rate to get the taxable capital gain.
- (4) Add the taxable capital gain to your income and tax it at your marginal rate (combined federal + provincial).
Because only half is taxable, the effective rate on the whole gain is half your marginal rate.
CRA — Line 12700Yes. The taxable half of the gain is taxed at your combined federal + provincial marginal rate, which varies by province. At the top bracket, the capital gains effective rate ranges from about 22.25% in Nunavut and 24% in Alberta to around 27% in Nova Scotia and Newfoundland & Labrador.
Your province is the one you reside in on December 31 of the tax year. Lower incomes pay a lower marginal rate, so the effective capital gains rate is also lower.
CRA — Income Tax RatesYes. According to the CRA, allowable capital losses can be applied against taxable capital gains. If losses exceed gains in a year, the net capital loss can be carried back up to three years or carried forward indefinitely to offset capital gains in other years.
Capital losses generally cannot reduce ordinary income such as employment income — only capital gains. The 50% inclusion rate applies to losses as well, so a net capital loss offsets a taxable capital gain on a like-for-like basis.
CRA — Capital LossesDividends are income, not capital gains, and have their own treatment. Eligible Canadian dividends are grossed up and attract a dividend tax credit, giving a lower effective rate than regular income. Capital gains, by contrast, are taxed via the 50% inclusion rate.
Both are generally more tax-efficient than interest income (which is fully taxable). Foreign dividends do not qualify for the Canadian dividend tax credit and are taxed as regular income.
CRA — Taxable DividendsAccording to the CRA, capital gains and losses are reported on Schedule 3, with the taxable amount flowing to line 12700 of your T1 Income Tax and Benefit Return.
The return is generally due April 30 (June 15 for self-employed, though any balance owing is still due April 30). When selling a property, the principal residence designation is reported on Form T2091. Keep records of purchase dates, the adjusted cost base, and proceeds for every property.
CRA — Reporting Capital GainsThe adjusted cost base (ACB) is your cost of acquiring a property for tax purposes. Per the CRA it includes:
- Purchase price of the property
- Acquisition costs such as commissions and legal fees
- Capital improvements (for real estate)
Outlays and expenses on the sale (such as commissions) are deducted from proceeds separately. A higher ACB means a smaller capital gain and less tax.
CRA — Adjusted Cost BaseDisposal costs (commissions, legal fees on the sale) reduce net proceeds and are treated by the CRA as outlays and expenses that reduce the capital gain — both effects reduce the taxable gain.
For ROI purposes: Net Proceeds = Sale Price − Disposal Costs, and Total Cost Base = Purchase Price + Acquisition Costs. This calculator includes both acquisition and disposal costs, giving an accurate picture of real profit.
CRA — Capital GainsFor identical shares of the same security bought at different times, the CRA requires a weighted-average ACB across the whole holding. When some shares are sold, the gain uses the average cost per share, not a specific lot.
The superficial loss rule also applies: if you sell at a loss and buy back the same security within 30 days (before or after), the loss is denied and added to the ACB of the repurchased shares instead. This calculator uses a single combined cost base, which suits a one-off purchase and sale.
CRA — Identical PropertiesYes. Income received while holding an investment — such as dividends, rent, or interest — contributes to total return and should be included for an accurate ROI picture. This calculator includes an optional field for income earned during the hold.
Important: This income is taxed in the year received, generally in full at the marginal rate (dividends have their own treatment) — it is not a capital gain, so the 50% inclusion rate does not apply to it.
CRA — Investment IncomeYes — unless held in a registered account. Stocks, ETFs and mutual funds held in a non-registered (taxable) account are subject to capital gains tax on disposal, with 50% of the gain taxable.
The same investments held inside a TFSA are entirely tax-free, and inside an RRSP/RRIF are tax-deferred until withdrawal — which is why these registered accounts are widely used. Dividends are taxed separately as income.
CRA — Registered PlansUsually yes. The CRA generally treats cryptocurrency as a commodity. Selling, trading one crypto for another, or using crypto to buy goods is a disposition that can trigger a capital gain (50% taxable).
If you trade crypto frequently or as a business, gains may instead be treated as fully taxable business income rather than a capital gain. Mining and staking can also be treated as income. The distinction depends on the facts of your activity.
CRA — Cryptocurrency GuideGenerally, yes. According to the CRA, the Principal Residence Exemption can eliminate the capital gain on the sale of your home for the years it was your principal residence. A partial gain can arise if:
- The property was rented out or used to earn income for part of the ownership period
- It was not your principal residence for every year of ownership
- The land exceeds half a hectare and is not needed for use and enjoyment
The sale of a principal residence must still be reported on Schedule 3 and Form T2091, even when fully exempt.
CRA — Principal ResidenceRental income is taxed as income in the year received, at the marginal rate — allowable expenses (property management, repairs, mortgage interest, and capital cost allowance) can reduce it.
Capital gain from selling a rental property is taxed via the 50% inclusion rate when sold. Note that claiming capital cost allowance over the years can trigger a recapture taxed as income on sale. Both rental income and the eventual gain must be reported to the CRA.
CRA — Rental IncomeAccording to the CRA, personal-use property (such as a cottage, boat, or furniture) is subject to capital gains tax, but a CAD 1,000 floor rule applies: both the cost and proceeds are deemed to be at least CAD 1,000, so small gains are eliminated.
Listed personal property (art, jewellery, rare books, stamps, coins) follows the same CAD 1,000 rule but allows losses to be applied only against gains from other listed personal property. Losses on ordinary personal-use property cannot be claimed at all.
CRA — Personal-Use PropertyImportant 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 10 June 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. The costs, risks and past performance of a specific fund or ETF are set out in its Fund Facts or ETF Facts document and prospectus.
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.
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