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Indexed Cost Of Acquisition Calculator

Work out indexed cost of acquisition instantly with clear inputs, formula shown and shareable results.

About Indexed Cost Of Acquisition Calculator

Indexation restates the original cost in current money using the official cost inflation index, so only the real gain is taxed. The uplift is the purchase cost multiplied by the ratio of the sale-year index to the purchase-year index.

Formula

Indexed cost

Indexed cost = cost × (index in sale year / index in purchase year)

Worked example

With the default values below, Indexed Cost Of Acquisition Calculator returns Indexed Cost Of Acquisition of $4,537,500.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Original Purchase Costminimum 0
2,500,000
Cost Index In The Purchase Yearaccepts 1–2,000
200
Cost Index In The Sale Yearaccepts 1–2,000
363

Results

Indexed Cost Of Acquisition
$4,537,500.00
Uplift From Indexation
$2,037,500.00
Indexation Factor
1.8150
Cumulative Inflation Applied
81.50%

Step by step

  1. 1Values used
  2. 2Indexed cost
  3. 3Indexed Cost Of Acquisition= 4,537,500.00
  4. 4Uplift From Indexation= 2,037,500.00
  5. 5Indexation Factor= 1.8150
  6. 6Cumulative Inflation Applied= 81.50

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.

Frequently Asked Questions

Which assets qualify for indexation?

Typically long-term holdings of property, unlisted shares and certain debt instruments — rules vary and have been narrowing.

What if improvements were made later?

Each improvement is indexed separately from the year it was incurred.

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