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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.
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.
Results & Comparison
CGT on the Sell Leg⚖️ apportioned at MV at 1 Jul 2027
Pre-2027 Slice (50% disc.)
Brackets
Post-2027 Slice (indexed)
Brackets
Borrow Instead (No CGT Event)
Sell vs Borrow: Bottom Line
For reference: legacy 50% discount only: $6,400 CGT (+$3,596 difference)
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
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
- Select your CGT regime (pre-budget, new build, or post-budget)
- Calculator shows your tax bill under old and new rules
- Net proceeds after CGT are your liquidity
- Asset is gone; no future upside or ongoing holding cost
Borrow path
- Enter loan amount, term, and expected interest rate
- Calculator shows total interest cost and monthly repayment
- Margin-call threshold shown for collateral-backed loans
- 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 lenders such as Ledn or Nexo. 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.