UK ROI Calculator
Work out your return on investment in GBP — total and annualised returns, measured against UK inflation benchmarks.
UK ROI Calculator
Return on Investment · HMRC CGT 2026/27
Buy Price
Sell Price & Income
Holding Period & Tax
Your Return
ROI · After-tax position · Benchmarks
ROI Summary
Based on a total cost base of £51,000 and net sale proceeds of £74,200, the capital gain is £23,200. giving a total return of £23,200.
The total ROI is 45.49% over 5 years, with a CAGR of 7.79% p.a. After estimated tax of £4,232, the after-tax ROI is 37.19%.
CGT Impact on ROI
Per HMRC, when a chargeable asset is sold, the gain above the £3,000 Annual Exempt Amount is added on top of income. The portion falling within the remaining basic-rate band is taxed at 18%, and the portion above it at 24%. UK CGT has no holding-period discount; companies pay corporation tax on gains instead.
Effect of the £3,000 Annual Exempt Amount
CGT Treatment by Entity (HMRC 2026/27)
| Entity | Annual Exempt Amount | Rate on Gains |
|---|---|---|
| Individual | £3,000 | 18% (basic band) / 24% (higher) |
| Trust (most) | £1,500 | 24% (trustee rate) |
| Company | None | Corporation tax (25% main rate) |
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 England base 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 pound in and every pound 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: £50,000 + £1,000 cost; sold £75,000 − £800 = £74,200 net. Capital Gain £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: £51,000 grows to £74,200 over 5 years → CAGR ≈ 7.8% p.a.
What Is (and Isn't) Subject to CGT
Per HMRC, Capital Gains Tax is charged on the profit when a chargeable asset is sold or disposed of. Some assets are exempt, and the first £3,000 of total gains in a tax year is covered by the Annual Exempt Amount.
Subject to CGT
- ✓Shares and funds held outside an ISA or pension
- ✓Property that is not your main home (buy-to-let, second homes)
- ✓Cryptoassets such as Bitcoin and Ethereum
- ✓Personal possessions worth £6,000 or more (excluding cars)
- ✓Business assets and goodwill
Exempt from CGT
- –Your main home (Private Residence Relief, conditions apply)
- –ISAs and PEPs
- –UK Government gilts and Premium Bonds
- –Private cars
- –Gains within the £3,000 Annual Exempt Amount
HMRC CGT Rates 2026/27
Since the October 2024 Budget, residential property and other assets are taxed at the same CGT rates. The rate depends on where the gain falls once stacked on top of income: 18% within the basic-rate band, 24% above it.
| Where the Gain Falls | Other Assets | Residential Property |
|---|---|---|
| Within basic-rate band | 18% | 18% |
| Above basic-rate band | 24% | 24% |
| Business Asset Disposal Relief | 14% (to £1m lifetime) | n/a |
| Company gains | 25% corporation tax | 25% corporation tax |
Benchmarking Against Inflation & the Base 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 England base rate (the near-risk-free return available on cash deposits).
Inflation — ONS 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: 3.1% in the Year to August 2026 (ONS).
Bank of England Base Rate
The base rate is the near-risk-free benchmark for sterling. The equivalent cumulative return shows what a cash deposit at this rate would have earned over the same period.
Current base rate: 3.75%, Held 30 July 2026 (BoE).
Frequently Asked Questions
Common questions about ROI calculation, Capital Gains Tax in the UK, cost base, and how different investment types are treated — answers verified against official HMRC, ONS and Bank of England 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 £51,000 (including costs) was paid for an asset and it was sold for net £74,200, the ROI is (£23,200 ÷ £51,000) × 100 = 45.5%. ROI does not account for how long the investment was held — use CAGR for time-adjusted comparisons.
HMRC — Capital Gains TaxCAGR 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 England — Bank RateThere is no universal benchmark, but two common reference points are: the Bank of England base rate (3.75% as at 30 April 2026) as a near risk-free baseline, and the ONS CPI inflation rate (3.1% in the Year to August 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 FTSE 100 has historically returned around 5–8% per year including dividends, before tax, though past performance is not a guide to the future.
Bank of England — Bank RateAfter-tax ROI is the return after Capital Gains Tax (CGT) has been deducted. Since CGT applies to gains above the £3,000 Annual Exempt Amount at 18% or 24%, the real return kept can be lower than the headline figure — particularly for higher-rate taxpayers.
After-Tax ROI = (After-Tax Profit ÷ Total Cost Base) × 100. Holding investments inside an ISA or pension removes CGT entirely, which is why tax wrappers materially change after-tax ROI.
HMRC — Capital Gains TaxInflation erodes purchasing power over time. The ONS CPI inflation rate was 3.1% in the Year to August 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 England base rate so real return is visible alongside the headline figure.
ONS — Consumer Price InflationThe 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 = Total 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.
HMRC — Tax When You Sell SharesAccording to HMRC, when a chargeable asset (such as shares outside an ISA, a second property, or cryptoassets) is disposed of, the gain above the Annual Exempt Amount is subject to Capital Gains Tax.
The gain is calculated as sale proceeds minus the total cost base (purchase price plus allowable costs). Gains within an ISA or pension are not subject to CGT.
HMRC — Capital Gains TaxThe Annual Exempt Amount (AEA) is the amount of gains an individual can make in a tax year before CGT is due. For 2026/27 it is £3,000 for individuals and £1,500 for most trusts.
The AEA is a use-it-or-lose-it allowance — it cannot be carried forward to a future tax year. It has been reduced from £12,300 in 2022/23, to £6,000 in 2023/24, to £3,000 from 2024/25. Companies do not receive an AEA and pay corporation tax on gains instead.
HMRC — CGT AllowancesFollowing the October 2024 Budget, residential property and other assets are taxed at the same CGT rates:
- 18% on the portion of the gain that falls within the basic-rate band
- 24% on the portion above the basic-rate band
The gain is stacked on top of taxable income to determine which band applies. Business Asset Disposal Relief applies a reduced 14% rate (rising to 18% from 6 April 2026) on qualifying gains up to a £1 million lifetime limit.
HMRC — CGT RatesThe calculation has four steps:
- (1) Calculate the gain: Sale Proceeds − Total Cost Base.
- (2) Deduct any allowable capital losses.
- (3) Deduct the £3,000 Annual Exempt Amount.
- (4) Stack the remaining gain on income: the part within the remaining basic-rate band is taxed at 18%, the rest at 24%.
The basic-rate band runs to £50,270 (personal allowance £12,570 + £37,700 basic band).
HMRC — Work Out CGTYes. According to HMRC, capital losses can be offset against capital gains in the same tax year, before the Annual Exempt Amount is applied. They cannot reduce income tax.
Unused losses can be carried forward indefinitely, provided they are reported to HMRC (usually via Self Assessment) within four years of the end of the tax year in which they arose.
HMRC — Capital LossesDividends are income, not capital gains. They have their own £500 dividend allowance for 2026/27 and are taxed at 10.75% (basic), 35.75% (higher) or 39.35% (additional rate) above that allowance. The basic and higher dividend rates each rose by 2 percentage points from 6 April 2026 (from 8.75% and 33.75%); the additional rate and the £500 allowance are unchanged.
Capital gains, by contrast, arise only when the asset is disposed of, benefit from the separate £3,000 Annual Exempt Amount, and are taxed at 18% or 24%. The two allowances are separate and do not overlap.
HMRC — Tax on DividendsAccording to HMRC, the reporting route depends on the asset:
- UK residential property: report and pay within 60 days of completion using a UK Property Disposal return.
- Other assets: report through Self Assessment, or use the real-time Capital Gains Tax service, by the Self Assessment deadline.
Records of purchase dates, costs, sale dates and proceeds should be kept for every chargeable asset.
HMRC — Report and Pay CGTAccording to HMRC, the cost base of an asset includes:
- (1) Purchase price — the amount paid for the asset.
- (2) Acquisition costs — incidental costs such as Stamp Duty, broker fees, and legal fees paid when buying.
- (3) Disposal costs — incidental costs such as agent commissions, advertising, and legal fees paid when selling.
- (4) Enhancement costs — money spent improving the asset (not routine maintenance).
Including all allowable costs reduces the chargeable gain.
HMRC — Work Out Your GainDisposal costs (e.g. agent fees, broker fees on sale) reduce net sale proceeds and are also part of the HMRC cost base — both effects reduce the chargeable 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.
HMRC — Work Out Your GainFor shares of the same class in the same company, HMRC requires a Section 104 holding — all the shares are pooled and the cost base is the average cost across the pool. When some shares are sold, the gain uses the average cost, not a specific lot.
Two special rules apply first: shares bought on the same day, and shares bought within the 30 days after a disposal (the "bed and breakfasting" rule), are matched before the pool. This calculator uses a single combined cost base, which suits a one-off purchase and sale.
HMRC — Shares and CGTYes. Income received while holding an investment — such as dividends from shares, rent from property, or interest from bonds — 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 separately as income at the marginal rate (with its own allowances) — it is not a capital gain and the Annual Exempt Amount does not apply to it.
HMRC — Income TaxYes — unless held inside a tax wrapper. According to HMRC, shares and funds held in a general investment account are subject to CGT on disposal above the Annual Exempt Amount.
Shares and funds held inside a Stocks and Shares ISA or a pension are exempt from CGT entirely — which is why these wrappers are widely used. Dividends are taxed separately as income.
HMRC — Tax When You Sell SharesYes. HMRC treats cryptoassets (such as Bitcoin and Ethereum) as chargeable assets for CGT, not currency. Selling, swapping one token for another, or using crypto to buy goods is a disposal that can trigger CGT above the Annual Exempt Amount.
Income from mining, staking, or airdrops is generally treated as income and taxed accordingly when received. Section 104 pooling rules apply to tokens of the same type.
HMRC — Tax on CryptoassetsGenerally, yes. According to HMRC, Private Residence Relief means no CGT is due when selling the property that has been your only or main home throughout ownership. A partial charge can arise if:
- Part of the home was let out or used exclusively for business
- The grounds exceed 5,000 square metres
- It was not your main home for the whole period of ownership
For mixed-use or previously let property, the calculation can be complex — consider professional advice.
HMRC — Tax When You Sell Your HomeRental income is taxed as income at the marginal rate in the tax year received — allowable expenses (letting agent fees, repairs, and a basic-rate tax credit for mortgage interest) can reduce it.
Capital gain from selling a buy-to-let or second property is a CGT event, taxed at 18% / 24% above the Annual Exempt Amount, and must be reported and paid within 60 days of completion. Both must be declared to HMRC.
HMRC — Renting Out a PropertyAccording to HMRC, personal possessions (chattels) such as antiques, art, and jewellery are subject to CGT if sold for £6,000 or more. Below £6,000 the gain is exempt. Private cars are always exempt.
A special rule limits the gain on items sold just over £6,000 to 5/3 of the amount above £6,000. Sets of items sold to the same person are treated as a single item for the threshold.
HMRC — CGT on PossessionsImportant Disclaimer
For educational and informational purposes only. This calculator produces estimates of Return on Investment (ROI), Compound Annual Growth Rate (CAGR) and UK Capital Gains Tax (CGT) based on the inputs provided and HM Revenue & Customs (HMRC) 2026/27 settings. The CGT Annual Exempt Amount is £3,000 for individuals and £1,500 for most trusts. Since the October 2024 Budget, residential property and other assets are taxed at the same rates: 18% on the portion of the gain falling within the basic-rate band and 24% above it. The basic-rate band runs to £50,270 (personal allowance £12,570 plus the £37,700 basic-rate band). Companies do not receive the Annual Exempt Amount and pay corporation tax on chargeable gains instead. Benchmark figures use the Office for National Statistics (ONS) Consumer Prices Index of 3.1% in the year to August 2026 and the Bank of England (BoE) base rate of 3.75%, held 30 July 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 (HMRC, ONS, Bank of England), 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, allowances, reliefs and benchmark rates change over time — figures shown may be out of date. Individual circumstances such as capital losses carried forward, Business Asset Disposal Relief, Private Residence Relief, the share-pooling (Section 104) rules, the 30-day "bed and breakfasting" rule, ISA and pension wrappers, Scottish income tax bands, the dividend allowance, or any other relief or allowance not captured by the inputs may materially affect actual CGT and after-tax returns. Income tax bands shown are for England, Wales and Northern Ireland.
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 financial adviser authorised by the Financial Conduct Authority (FCA), or directly from HMRC.
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.