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Long Term Capital Gains With Indexation Calculator

Work out long term capital gains with indexation instantly with clear inputs, formula shown and shareable results.

About Long Term Capital Gains With Indexation Calculator

With indexation the taxable gain is sale value less the inflation-adjusted cost, taxed at the indexed rate. Comparing against the same rate applied to the unindexed gain shows exactly what the indexation relief is worth.

Formula

Indexed long-term gain

Gain = sale - cost × indexation factor; tax = gain × rate

Worked example

With the default values below, Long Term Capital Gains With Indexation Calculator returns Tax On The Indexed Gain of $390,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Sale Valueminimum 0
6,500,000
Purchase Costminimum 0
2,500,000
Indexation Factoraccepts 1–10
1.82
Tax Rate With Indexationaccepts 0–40 %
20 %

Results

Tax On The Indexed Gain
$390,000.00
Taxable Long-Term Gain
$1,950,000.00
Indexed Cost Of Acquisition
$4,550,000.00
Tax Saved By Indexation
$410,000.00

Step by step

  1. 1Values used
  2. 2Indexed long-term gain
  3. 3Tax On The Indexed Gain= 390,000.00
  4. 4Taxable Long-Term Gain= 1,950,000.00
  5. 5Indexed Cost Of Acquisition= 4,550,000.00
  6. 6Tax Saved By Indexation= 410,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or compounding frequency into account.
  • Figures are rounded for display to 2 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

Is indexation always better?

Not always. Some regimes offer a lower flat rate without indexation, and for short holdings or fast-appreciating assets that can win.

What if the indexed cost exceeds the sale value?

There is a long-term capital loss, which can usually be set against other long-term gains.

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Long Term Capital Gains With Indexation Calculator