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Borrow vs Sell Calculator

Compare selling enough securities to net a cash need after capital gains tax against borrowing the same amount and staying invested — for any liquidity need, not just a home purchase.

Quick answer: Compare selling securities to net a cash need after capital gains tax against borrowing the same amount against the portfolio and staying invested, for any liquidity need. Enter Cash Needed (after tax, net), Portfolio Value, Entered Annual Portfolio Return Scenario, and Time Horizon to personalize the estimate. It returns Gross Sale Needed to Net the Cash and Loan as % of Portfolio so you can compare the impact before choosing a next step. Use it to compare payment, APR, total cost, credit impact, and lender or card tradeoffs.

SWReviewed by SwitchWize Research Desk · Last reviewed September 1, 2026
Gross Sale Needed to Net the Cash
$500,000
Gross Sale Needed to Net the Cash
$500,000
Gross Sale Needed to Net the Cash
$500,000
Loan as % of Portfolio
16.67%
↑ Borrow Wins over 7 years
$217,077 advantage
Borrowing overtakes selling in year 1
Sell
Borrow
Upfront
Gross sale / loan amount$588,235$500,000
Capital gains tax triggered$88,235$0
Over 7 Years
Total interest paid$0$227,500
Effective loan rate—6.5%
Estimated Wealth at Year 7
Remaining investable assets$3.87M$4.09M
Loan as % of portfolio16.7%

This calculator doesn't model margin-call risk. See the Margin-Call Stress Test for what a portfolio decline does to this loan.

Portfolio-Side Wealth Over Time
Sell Borrow

Borrowing and staying invested outperforms selling by $217K over 7 years — the avoided capital-gains tax plus compounding on the full portfolio.

Diagnostic

Selling enough to net $500,000 after tax requires a larger gross sale than the cash amount itself; the full comparison, including the after-tax gross-up, is in the panel above.

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What to do next

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Your action plan
  1. 1

    Compare the leading option against your current setup

    Compare selling securities to net a cash need after capital gains tax against borrowing the same amount against the portfolio and staying invested, for any liquidity need.

  2. 2

    Check the assumptions before using the result for a high-stakes decision

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

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Frequently Asked Questions

Everything you need to know.

How is this different from the SBL vs Mortgage calculator?
This calculator is for any liquidity need — a tax bill, a business investment, anything — not specifically a home purchase. If you're buying a home, the dedicated SBL vs Mortgage calculator models the mortgage-specific comparison (down payment, closing costs, amortization) that this one doesn't.
Why does selling require a larger gross sale than the cash I need?
Because selling triggers capital gains tax on the embedded gain in the shares sold, so netting a specific amount of cash after tax requires selling more than that amount gross. This calculator grosses up the sale automatically so the comparison is apples to apples.
Is loan interest automatically tax-deductible if I'm investing the proceeds?
No — deductibility depends on tracing the actual use of the loan proceeds under federal interest-tracing rules, and even qualifying investment interest is capped at your net investment income for the year. See the interest-deductibility tracing guide before assuming the toggle applies to your situation.
What happens if the portfolio can't support the loan I need?
The calculator flags a capacity shortfall instead of declaring a winner — comparing a fully-funded sale against a loan that doesn't actually cover the need wouldn't be a fair comparison.
Is the Borrow vs Sell Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Borrow vs Sell Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare securities-based lenders, or run Money Map to compare this loans & credit decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (loans) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

Selling securities to raise cash triggers capital gains tax on the embedded gain, and pulls that money out of the market permanently. Borrowing against the same portfolio avoids the tax event and keeps the full portfolio compounding, but adds real interest cost and loan risk. Which one leaves you wealthier after N years depends on the gap between your loan rate and your portfolio's return, not on which one feels safer.

How to Use It

  1. 1Enter the cash amount you actually need, after tax
  2. 2Enter your portfolio value and expected annual return
  3. 3Set the lender advance rate and loan interest rate
  4. 4Toggle interest deductibility only if you have confirmed the use of proceeds actually qualifies
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