Portfolio Turnover Tax Drag Calculator
What frequent trading costs in realized-gains tax versus buy-and-hold — the silent return killer for active investors.
Formula
Every realized gain hands the government a portion that then can't compound — tax deferral is a free, growing loan that high turnover surrenders. This is the quiet mathematical reason index funds (turnover ~3%) beat active funds (turnover 50-100%) even before the alpha argument.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need portfolio turnover tax drag calculator results fast? Analysts, founders, traders and finance professionals use the Portfolio Turnover Tax Drag Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Portfolio Turnover Tax Drag Calculator
What frequent trading costs in realized-gains tax versus buy-and-hold — the silent return killer for active investors. Every realized gain hands the government a portion that then can't compound — tax deferral is a free, growing loan that high turnover surrenders. This is the quiet mathematical reason index funds (turnover ~3%) beat active funds (turnover 50-100%) even before the alpha argument. The governing relationship is tax drag ≈ gross return × turnover × gains rate (annual realization). The Portfolio Turnover Tax Drag Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Portfolio Turnover Tax Drag Calculator
- 1Enter Portfolio value (currency), Gross annual return (%), Annual turnover (%), Tax on realized gains (%), Horizon into the Portfolio Turnover Tax Drag Calculator.
- 2The result is computed automatically using tax drag ≈ gross return × turnover × gains rate (annual realization) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Portfolio Turnover Tax Drag Calculator?
- ✓Computes portfolio turnover tax drag calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Portfolio Turnover Tax Drag Calculator?+
Portfolio Turnover Tax Drag Calculator uses tax drag ≈ gross return × turnover × gains rate (annual realization). Every realized gain hands the government a portion that then can't compound — tax deferral is a free, growing loan that high turnover surrenders. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Portfolio Turnover Tax Drag Calculator need?+
Enter Portfolio value (currency), Gross annual return (%), Annual turnover (%), Tax on realized gains (%), Horizon and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Portfolio Turnover Tax Drag Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Portfolio Turnover Tax Drag Calculator?+
This is the quiet mathematical reason index funds (turnover ~3%) beat active funds (turnover 50-100%) even before the alpha argument.
What is the Portfolio Turnover Tax Drag Calculator based on?+
The method follows authoritative sources: Arnott, Berkin & Ye — tax efficiency of buy-and-hold. The formula and references are shown on the page so you can verify and cite the result.
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