South African ROI Calculator
Work out your return on investment in ZAR — total and annualised returns, measured against South African inflation benchmarks.
ZA ROI Calculator
Return on Investment · SARS CGT 2026/27
Buy Price
Sell Price & Income
Holding Period & CGT
Your Return
ROI · After-tax position · Benchmarks
ROI Summary
Based on a total cost base of ZAR 510 000 and net sale proceeds of ZAR 742 000, the capital gain is ZAR 232 000, giving a total return of ZAR 232 000.
The total ROI is 45.49% over 5 years, with a CAGR of 7.79% p.a. After estimated tax of ZAR 24 698, the after-tax ROI is 40.65%.
CGT Impact on ROI
Per SARS, South African CGT for individuals uses the 40% inclusion rate — 40% of the net capital gain (after exclusions) is included in taxable income and taxed at the marginal rate. The maximum effective CGT rate is 18% (40% × 45% top marginal rate).
Effect of SARS Exclusions
SARS CGT Rates & Exclusions (Individuals, 2026/27)
| Item | 2026/27 Value |
|---|---|
| Inclusion rate (individuals & special trusts) | 40% |
| Inclusion rate (companies) | 80% |
| Inclusion rate (other trusts) | 80% |
| Max effective CGT rate (individuals) | 18% |
| Max effective CGT rate (companies) | 21.6% |
| Max effective CGT rate (other trusts) | 36% |
| Annual exclusion (individuals) | R50,000 |
| Year-of-death exclusion | R440,000 |
| Primary residence exclusion | R3,000,000 |
| Small business 55+ (market value ≤ R15m) | R2,700,000 |
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 SARB repo 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 rand in and every rand 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: R500,000 + R10,000 cost; sold R750,000 − R8,000 = R742,000 net. Capital Gain R232,000 → 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: R510,000 grows to R742,000 over 5 years → CAGR ≈ 7.8% p.a.
South African CGT Framework
Per SARS, South Africa uses an "inclusion rate" CGT model: a percentage of the net capital gain is included in taxable income, then taxed at the marginal rate. For individuals the inclusion rate is 40%, capping the effective CGT rate at 18% (40% × 45% top marginal rate). For companies it is 80%, capping at 21.6% (80% × 27%). For other trusts it is 80%, capping at 36% (80% × 45%).
Subject to CGT
- ✓Shares held outside a Tax-Free Savings Account or retirement fund
- ✓Investment property and second homes
- ✓Cryptocurrency (treated as an asset for CGT or income tax depending on intent)
- ✓Business assets and goodwill
- ✓Krugerrands and gold coins (held as investment)
Excluded or Differently Taxed
- –Primary residence (first R3,000,000 of gain — Budget 2026)
- –Gains within the R50,000 annual exclusion
- –Tax-Free Savings Accounts (TFSAs) up to limits
- –Retirement fund growth (RA, pension, provident — tax-deferred)
- –Personal-use assets (cars, household goods, boats)
- –Government / public benefit organisation bonds
SARS Individual Tax Brackets 2026/27
The SA tax year runs from 1 March to 28 February of the following year — not the calendar year. These brackets apply for the 2027 tax year (1 March 2026 – 28 February 2027), per SARS announcement of 25 February 2026.
| Taxable Income | Rate | Tax on Band |
|---|---|---|
| R0 – R245,100 | 18% | R44,118 (within band) |
| R245,101 – R383,100 | 26% | R35,880 |
| R383,101 – R530,200 | 31% | R45,601 |
| R530,201 – R695,800 | 36% | R59,616 |
| R695,801 – R887,000 | 39% | R74,568 |
| R887,001 – R1,878,600 | 41% | R406,556 |
| Above R1,878,600 | 45% | — |
Benchmarking Against Inflation & the SARB Repo 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 Stats SA CPI inflation (preserves purchasing power) and the SARB repo rate (the policy interest rate set by the South African Reserve Bank).
Inflation — Stats SA 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. Stats SA publishes the CPI monthly. SARB's inflation target is 3% with a tolerance band of ±1 percentage point (revised from the 3–6% range in 2025).
Latest CPI: 5.0% in June 2026, up from 4.5% in May (Stats SA).
SARB Repo Rate
The repurchase (repo) rate is the policy rate set by the South African Reserve Bank's Monetary Policy Committee. Commercial prime lending rate is typically 3.5 percentage points above repo. A 25bp hike on 28 May 2026 took repo to 7.00% (effective 29 May 2026), with prime at 10.50%.
Current repo rate: 7.00% (effective 29 May 2026; SARB).
Frequently Asked Questions
Common questions about ROI calculation, South African Capital Gains Tax, cost base, and how different investment types are treated — answers verified against official SARS, SARB and Stats SA 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 R510,000 (including costs) was paid for an asset and it was sold for net R742,000, the ROI is (R232,000 ÷ R510,000) × 100 = 45.5%. ROI does not account for how long the investment was held — use CAGR for time-adjusted comparisons.
South African Revenue Service (SARS)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.
South African Reserve Bank (SARB)There is no universal benchmark, but two common reference points are: the SARB repo rate (7.00% effective 29 May 2026) as a policy rate baseline, and the Stats SA CPI inflation rate (5.0% in June 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 JSE All Share Index has historically returned around 8–10% per year including dividends over long periods, though past performance is not a guide to the future.
SARB — Monetary PolicyAfter-tax ROI is the return after Capital Gains Tax has been deducted. South African CGT for individuals applies the 40% inclusion rate to the gain (above exclusions), which is then taxed at the marginal rate (up to 45%) — maximum effective CGT rate is 18%.
After-Tax ROI = (After-Tax Profit ÷ Total Cost Base) × 100. Holding investments inside a Tax-Free Savings Account (TFSA) or retirement fund changes after-tax ROI materially — TFSAs are exempt from both CGT and tax on growth, while retirement funds defer tax until withdrawal.
SARS — CGTInflation erodes purchasing power over time. The Stats SA CPI inflation rate was 5.0% in June 2026, up from 4.5% in May, with the largest contributions from housing and utilities, transport, and insurance. 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 SARB repo rate so real return is visible alongside the headline figure.
Stats SA — Consumer Price IndexThe 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.
For property in South Africa, the break-even should also factor in transfer duty paid on purchase and estate agent commission on sale. 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 moment.
SARSSouth Africa uses an inclusion rate CGT model. Per SARS, a percentage of the net capital gain (after exclusions) is included in taxable income and taxed at the marginal income tax rate:
- Individuals and special trusts: 40% inclusion → max effective 18%
- Companies: 80% inclusion → max effective 21.6% (at 27% corporate rate)
- Other trusts: 80% inclusion → max effective 36%
Several exclusions reduce the gain before applying the inclusion rate — annual exclusion (R50,000), primary residence (R3,000,000), and special situations.
SARS — Capital Gains TaxBudget 2026 (effective 1 March 2026) included the first major adjustments to CGT exclusions since 2012. Per SARS:
- Annual exclusion: R40,000 → R50,000 (+25%, first increase since 2017)
- Primary residence: R2,000,000 → R3,000,000 (+50%, first increase since 2012)
- Year-of-death exclusion: R300,000 → R440,000 (+47%)
- Small business 55+ disposal: R1,800,000 → R2,700,000
- Small business market-value ceiling: R10m → R15m
The 40% inclusion rate and individual marginal tax rates (18–45%) were unchanged. Tax brackets were adjusted for inflation.
SARS Budget 2026 FAQEvery individual is entitled to an annual CGT exclusion. For the 2026/27 tax year (1 March 2026 – 28 February 2027), the exclusion is R50,000 per individual — up from R40,000 in prior years.
The exclusion is deducted from the net capital gain before the 40% inclusion rate is applied. If your total capital gains in a tax year are R50,000 or less, no CGT is payable. The exclusion increases to R440,000 in the year of death. The exclusion is per individual — spouses each have their own R50,000.
SARS — CGT ExclusionsThe calculation has five steps:
- (1) Calculate the capital gain: Sale Proceeds − Cost Base − Selling Expenses.
- (2) Apply any specific exclusion (e.g. R3,000,000 primary residence).
- (3) Deduct the R50,000 annual exclusion.
- (4) Apply the 40% inclusion rate (individuals): Net Gain × 40% = Included Amount.
- (5) Add the included amount to taxable income and tax at the marginal rate (18%–45%).
The CGT is the additional tax payable as a result of including the gain. Capital losses can be offset against capital gains in the same year; unused losses carry forward indefinitely.
SARS — Calculate CGTPer SARS, the CGT liability arises when the sale agreement is signed, not when transfer is registered at the Deeds Office.
This means a February 2026 sale agreement falls in the 2025/26 tax year (ending 28 February 2026) even if transfer only occurs in May 2026. A sale agreement signed on or after 1 March 2026 falls in the 2026/27 tax year. This timing rule determines whether the new R3,000,000 primary residence exclusion applies — the agreement signing date, not the transfer date, sets the applicable tax year.
SARS — Budget 2026 FAQSARS may scrutinise frequent property disposals or share trades to determine whether you are effectively trading rather than investing. If treated as trading, profits are taxed as ordinary income at the full marginal rate (18%–45%), not as a capital gain at the 40% inclusion rate (max 18% effective).
Factors SARS considers: frequency of transactions, length of holding period, intent at acquisition (resale vs long-term investment), borrowing arrangements, and the nature of the asset. Frequent property flippers and active share traders are most at risk. SARS may require records demonstrating long-term investment intent — holding-period statements, dividend reinvestment evidence, and similar.
SARSNon-residents are liable for CGT only on the disposal of South African immovable property, interests in land-rich companies, and property of a SA permanent establishment.
Per SARS, where a non-resident individual disposes of SA immovable property, a withholding tax of 7.5% applies to the sale price. This is not the final tax — it is an advance against the actual CGT liability for the year. Non-residents file the final tax return and may receive a refund or owe additional tax. For non-resident companies the withholding rate is 10%; for non-resident trusts it is 15%.
SARS — Non-Resident CGTYes. Capital losses in the current tax year can be offset against capital gains in the same year before applying the R50,000 annual exclusion. If losses exceed gains, the unused loss can be carried forward indefinitely to offset against future capital gains.
Losses generally cannot be offset against ordinary income — only against capital gains. Special rules apply to losses on disposals to connected persons (suspended until the asset leaves the connected-person group) and to "personal-use" assets (losses on items like cars and household goods are generally not allowable).
SARS — Capital LossesAccording to SARS, the base cost of an asset includes:
- (1) Purchase price of the asset
- (2) Acquisition costs — transfer duty, conveyancing fees, broker commission, legal fees
- (3) Improvement costs — capital improvements (not routine repairs and maintenance)
- (4) Selling expenses — estate agent commission, conveyancing on sale, advertising
Including all allowable costs reduces the chargeable capital gain. For assets acquired before 1 October 2001 (CGT inception), special "valuation date" rules apply — the base cost can be the market value on that date, the time-apportionment base cost, or 20% of proceeds.
SARS — Base CostDisposal costs (estate agent commission, conveyancing on sale, brokerage) reduce net sale proceeds and are also treated by SARS as part of the base cost for CGT purposes — 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.
SARSFor shares of the same class in the same company acquired at different times, SARS allows the weighted-average method (most common) or the specific identification method (if you can identify which specific shares are sold).
For listed shares, the weighted-average method is generally used: total cost ÷ total shares held = average cost per share. When some shares are sold, this average is applied to determine the cost base of the shares sold. SARS requires complete brokerage records — buy and sell dates, prices, commissions — to be retained for at least 5 years.
SARS — Cost Base for SharesYes. Income received while holding an investment — rent, interest, dividends — 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.
Tax treatment: Rental income is taxed at the marginal income tax rate. Interest income above the SARS interest exemption (R23,800 under-65 / R34,500 65+) is taxable. Local dividends are subject to a 20% Dividend Withholding Tax (DWT) — typically withheld at source. The CGT calculation is separate from these income tax events.
SARS — Interest and DividendsYes — unless held inside a Tax-Free Savings Account (TFSA) or retirement fund. Per SARS, JSE-listed shares held in a normal brokerage account are subject to CGT at the 40% inclusion rate on the gain, taxed at the marginal rate.
Shares held inside a TFSA are exempt from CGT, with annual (R46,000) and lifetime (R500,000) contribution limits. Shares held in a Retirement Annuity (RA), pension or provident fund grow tax-deferred — CGT does not apply within the fund; tax applies on withdrawal. Local dividends are subject to 20% Dividend Withholding Tax.
SARS — Tax-Free InvestmentsYes — but the treatment depends on intent. Per SARS, cryptocurrency held as a long-term investment falls under CGT when disposed of: gain × 40% inclusion × marginal rate (max effective 18%).
If SARS considers your crypto activity to be trading (frequent buy/sell, short holding periods, profit motive), gains are taxed as ordinary income at the full marginal rate (up to 45%). Crypto received as mining rewards, staking income, or payment for services is taxable as income at receipt. Every disposal — including swapping one crypto for another, using crypto to pay for goods — is a CGT event. SARS expects detailed records of every transaction, including timestamps and ZAR-equivalent values.
SARS — CryptoassetsMostly. The primary residence exclusion means the first R3,000,000 of capital gain on your main home is excluded (Budget 2026 increase, effective 1 March 2026). Any gain above R3,000,000 is subject to CGT.
The exclusion applies only to the residence in which you ordinarily live, and only to land up to 2 hectares used in association with the residence. If a portion was let out or used exclusively for business, the exclusion is apportioned accordingly. For co-owned properties (e.g. spouses on joint bond), the exclusion is split between the owners. Per SARS.
SARS — Primary ResidenceRental income is taxed under income tax at the marginal rate (up to 45%) in the year received. Allowable expenses (bond interest, levies, repairs, insurance, agent fees, rates) can be deducted before tax is calculated. Net rental loss can offset other income subject to ring-fencing rules.
Capital gain from selling an investment property is taxed under the CGT framework: 40% inclusion rate × marginal income tax rate (max 18% effective). For a primary residence, the first R3,000,000 of gain is excluded. Both must be reported on the annual tax return — rental income annually; CGT in the year of sale.
SARS — Rental IncomeGenerally, no. Per SARS, "personal-use assets" — items like cars, household goods, jewellery and clothing held for personal use — are excluded from CGT. Losses on personal-use assets are also not allowable.
Exceptions: collectibles held primarily for investment (rare coins, fine art, vintage watches) may be subject to CGT if SARS considers them investments rather than personal-use items. Krugerrands and other gold coins held as an investment are subject to CGT. Boats over 10 metres and aircraft over 450kg are not classed as personal-use assets and remain within CGT.
SARS — Personal-Use AssetsImportant Disclaimer
For educational and informational purposes only. This calculator produces estimates of Return on Investment (ROI), Compound Annual Growth Rate (CAGR) and South African Capital Gains Tax based on the inputs provided and SARS 2026/27 settings. The 2026/27 tax year runs from 1 March 2026 to 28 February 2027. South African CGT for individuals uses the 40% inclusion rate: 40% of the net capital gain (after exclusions) is added to taxable income and taxed at the marginal income tax rate, capping the effective CGT rate at 18% (40% × 45% top marginal rate). Budget 2026 (effective 1 March 2026) increased the annual exclusion to R50,000 (from R40,000), the primary residence exclusion to R3,000,000 (from R2,000,000), and the year-of-death exclusion to R440,000 (from R300,000) — first major increases in many years. Marginal income tax brackets (18% / 26% / 31% / 36% / 39% / 41% / 45%) and the 40% inclusion rate were unchanged. Income earned during the holding period is taxed separately under income tax at the marginal rate. Benchmark figures use Stats SA CPI of 5.0% (June 2026, up from 4.5% in May) and the SARB repo rate of 7.00%, hiked by 25 basis points on 28 May 2026 and effective from 29 May 2026 (prime lending rate 10.50%). 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 (SARS, SARB, Stats SA), 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, exclusions, rebates and benchmark rates change over time — figures shown may be out of date. Individual circumstances such as the application of small business 55+ relief (R2,700,000 exclusion), Tax-Free Savings Account exemption, retirement fund deferral, the trading-vs-investment distinction (potentially taxing gains as ordinary income at up to 45%), connected-person rules, primary residence apportionment for partial business or rental use, capital losses brought forward, the 7.5% non-resident withholding tax on immovable property disposals, year-of-death exclusion (R440,000), foreign capital gains rules, dividend withholding tax, or any other rule not captured by the inputs may materially affect actual CGT and after-tax returns. The CGT calculation assumes the disposal occurs in the 2026/27 tax year (sale agreement signed on or after 1 March 2026); pre-Budget 2026 disposals use lower exclusion amounts (R40,000 annual; R2,000,000 primary residence).
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 tax practitioner registered with SARS, a Financial Sector Conduct Authority (FSCA) authorised financial services provider, or directly from SARS.
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.