🇺🇸 US Capital Gains 🇬🇧 UK CGT 📊 Annualized ROI

ROI Calculator

Calculate your return on investment as a percentage and annualized rate. The same investment can have very different after-tax returns depending on where you live.

Quick Answer
ROI = (Net Gain ÷ Initial Investment) × 100. Annualized ROI = (Final Value ÷ Initial Value)^(1/Years) − 1.

How ROI Is Reported and Taxed by Country

ROI math is universal — but how much of that return you keep after tax varies dramatically by country.

Country Long-Term CGT Rate Annual Allowance Tax-Free Account
🇺🇸 United States 0%, 15%, or 20%None (short-term = ordinary income)401k / Roth IRA
🇬🇧 United Kingdom 18% / 24%£3,000/year CGT allowanceISA (£20k/yr limit)
🇦🇺 Australia 50% discount (held >12 mo)NoneSuper (concessional)
🇨🇦 Canada 50% inclusion rateTFSA contribution roomTFSA / RRSP
🇩🇪 Germany 26.375% (Abgeltungsteuer)€1,000 SparerpauschbetragNone standard

Frequently Asked Questions

What is a realistic ROI for different asset classes?

Historically: global equities ~7–10% annualized, real estate 4–8% (plus leverage), bonds 2–5%, cash/savings 0.5–5% depending on rate environment. These are pre-tax returns — subtract your capital gains tax rate for your true after-tax ROI.

How does the UK ISA improve effective ROI?

A UK ISA (Individual Savings Account) lets you invest up to £20,000 per year with all gains and income completely tax-free. A 10% gross ROI stays 10% net inside an ISA, versus 8.1% after the 18% CGT rate for basic-rate taxpayers outside an ISA.