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Sell vs Borrow Calculator

Should you sell your investment and pay CGT, or borrow against it and keep the asset?
Compare your real tax bill vs total borrowing cost side-by-side, with Budget 2026-27 CGT rules built in.

Shares · Crypto · Property · Gold

Selling triggers a CGT event. Borrowing against your asset preserves ownership and defers tax indefinitely. This tool models both paths for your specific numbers so you can see which strategy costs less.

Educational tool only. Not financial or tax advice.

Investment Details

Crypto-backed loans (e.g. Ledn, Nexo) let you borrow against BTC/ETH without selling. Typical LTV: 30-50%. Watch liquidation risk if price drops sharply.

CGT treatment: Sale on/after 1 July 2027 with pre-2027 purchase: gain splits at market value at 1 July 2027.

Value at 1 July 2027

Results & Comparison

CGT on the Sell Leg⚖️ apportioned at MV at 1 Jul 2027

Pre-2027 Slice (50% disc.)

Pre-cutoff gain:$13,776
Tax:$2,204
Brackets
30%$2,066
Medicare 2%$138

Post-2027 Slice (indexed)

Real gain:$23,854
Tax:$7,633
Brackets
Stacked on $80,000 income + $6,888 pre-2027 gain
30% × $23,854$7,156
Medicare 2%$477
Total CGT:$9,837
▲ New regime costs more:$5,618

Borrow Instead (No CGT Event)

Loan Amount:$20,000
LTV Ratio:40.0%
Total Interest:$1,100
Monthly Payment:$1,758
Tax Deduction (if eligible):$0 (not deductible for private use)
Deductibility depends on the use of the borrowed money (ATO); legal basis not verified in this release
Net Interest Cost (after tax):$1,100

Sell vs Borrow: Bottom Line

CGT if you sell today (your regime):$9,837

For reference: legacy 50% discount only: $6,400 CGT (+$3,437 difference)

Net interest cost (after tax deduction):$1,100
Cost difference:$8,738 (Borrowing cheaper)
Collateral risk threshold:Price drop of 53%

Parameters checked on 22 Oct 2026 · Source: ATO · FY2030-31

FY2027-28 rates applied (latest legislated). CPI: ABS 6401.0 to 2026Q3. Medicare low-income reduction, LITO and Division 293 are not modelled.

Key Risk for This Asset Type

  • Automatic liquidation if price drops below LTV threshold (typically 70-85%)
  • Most providers are international; verify ASIC licensing
  • Interest rates are typically higher than traditional assets (8-15% p.a.)

Educational Note: Budget 2026-27

General information only. Not personal financial advice. Uses Australian resident income tax rates for the financial year of sale (FY2030-31) plus a flat 2% Medicare levy. Rates for FY2027-28 onward: Treasury Laws Amendment (More Cost of Living Relief) Act 2025 (No. 28), Sch 1. CGT treatment derived from purchase and sale dates: pre-2027 sale → 50% discount; pre-2027 purchase with post-2027 sale → split at the value just before 1 July 2027 (Tax Reform No. 1 Act 2026, s 112-155); post-2027 purchase → inflation-indexed + top-up to the 30% minimum tax. CPI data sourced from ABS 6401.0. Interest deduction benefit uses bracket-stacking (incremental rate). Consult a registered tax agent for your specific situation.

How the Comparison Works

The tool computes two paths for the same liquidity need. Selling pays CGT immediately but ends ongoing risk. Borrowing avoids CGT but accrues interest and margin-call risk.

Sell path

  1. Select your CGT regime (pre-budget, new build, or post-budget)
  2. Calculator shows your tax bill under old and new rules
  3. Net proceeds after CGT are your liquidity
  4. Asset is gone; no future upside or ongoing holding cost

Borrow path

  1. Enter loan amount, term, and expected interest rate
  2. Calculator shows total interest cost and monthly repayment
  3. Margin-call threshold shown for collateral-backed loans
  4. Asset stays in your portfolio; you keep future upside and the CGT clock running

This is not a recommendation

Borrowing against an asset introduces leverage risk. Margin calls, rising interest rates, and asset price drops can compound losses. This calculator is an educational illustration. Always consult a licensed financial adviser before using leverage.

Frequently Asked Questions

When is borrowing against an asset better than selling?

Borrowing avoids a CGT event. If your CGT bill is higher than the total interest cost over your intended borrowing period, borrowing may preserve more wealth. This depends on your asset type, LTV ratio, interest rate, and applicable CGT regime.

What assets can I borrow against in Australia?

ASX shares and ETFs via margin loans (major banks and brokers), investment property via equity release or LOC, and major crypto (BTC/ETH) via specialist crypto lenders. Altcoins and physical gold/silver have very limited lending options in Australia.

Is borrowing against an investment tax-deductible?

Interest on borrowings used for income-producing investments is generally tax-deductible in Australia. For example, margin loan interest against a share portfolio used to earn dividends is deductible. The calculator shows the potential tax deduction benefit. Always confirm with a registered tax agent.

This calculator is for educational purposes only. Results are illustrative and do not constitute financial, tax, or legal advice. Ripper Wealth is not a licensed financial adviser. Borrowing against investments involves significant risk including margin calls, forced asset sales, and compounding losses. Always consult a registered financial adviser and tax agent for advice specific to your situation. CPI data sourced from ABS 6401.0.

Just want to calculate CGT without the borrow comparison?

Use the pure CGT Calculator for a clean old-vs-new regime comparison.

CGT Calculator →Property CGT Calculator →

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