United Kingdom ROI Calculator
This calculator estimates Return on Investment, CAGR, and Capital Gains Tax for an investment held by a UK resident in the latest tax year. Calculations apply HMRC’s £3,000 Annual Exempt Amount and the 18% / 24% CGT rates split across the basic-rate band.
Enter Buy and Sell Prices
Input the purchase price, acquisition costs, sale price, and disposal costs in GBP.
Set Holding Period and Income
Adjust the holding period slider and your annual taxable income to apply the correct CGT band.
See Your Full Return
Results update automatically. View CAGR, CGT, after-tax ROI, and the basic-rate vs higher-rate split.
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.
The total ROI is 0% over 5 years, with a CAGR of 0% p.a. After estimated tax, the after-tax ROI is 0%.
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: 2.8% in the 12 months to April 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 on 30 April 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.
Important 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 2.8% in the 12 months to April 2026 and the Bank of England (BoE) base rate of 3.75%, held on 30 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 (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.
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