Do I need this for my TFSA or RRSP?

No. You do not need to track ACB for registered accounts because they are exempt from capital gains tax.

What is a 'Phantom Distribution'?

Common in Canadian ETFs. It's a non-cash distribution that increases your ACB without giving you actual shares. You must add this value to your total cost base.

Adjusted Cost Base (ACB) Tracker

Crucial for taxable accounts in 2026: Trace every buy, sell, and dividend to stop overpaying the CRA.

Calculate Your Results

Adjust the values to see how your numbers change

What is Adjusted Cost Base (ACB)?

Adjusted Cost Base (ACB) is an income tax term that refers to the change in an asset's book value resulting from improvements, new purchases, or other factors.

In Canada, when you sell an investment in a non-registered account, your capital gain or loss is (Proceeds of Sale - Commissions) minus ACB.

Failing to track your ACB properly—especially when you have reinvested dividends (DRIPs)—usually leads to double taxation because you've already paid tax on those dividends when they were issued.

How to Use This Calculator

Add Purchases - Input every buy order, including the commissions paid.
Track Dividends - Choose 'DRIP Div' to add the cash value of reinvested dividends to your total cost base.
Enter Sales - When you sell, the calculator determines the realized gain based on the average cost to date.
Keep Record - The CRA requires you to keep these records for 6 years after the year you sell.

Calculation Formula & Example

The Formula

New ACB = (Old Total Cost + New Purchase Price + Fees) / New Total Shares

Where:

Proceeds = The amount you received from selling, minus commission.
Capital Gain = Proceeds minus (ACB per share × Number of shares sold).

Example Calculation

You buy 100 shares at $50. Your ACB is $50.
Next month, you get a $10 reinvested dividend. Your total cost is now $5,010 for 100 shares.
Your new ACB per share is $50.10. If you sell at $60, you only pay tax on $9.90/share.

Benefits of Using This Calculator

Avoid Double Taxation - Ensure reinvested dividends are added to your cost base so you don't pay tax on them again as a capital gain.
Accurate Tax Filing - Fill out your Schedule 3 with confidence during tax season.
Track Every Penny - Include commissions and brokerage fees which are fully deductible from your gains.

Calculator Use Cases

ETF Investors

Essential for tracking phantom distributions (reinvested capital gains) which increase your cost base.

Stock Traders

Keep track of multiple buy/sell lots to determine true profitability.

Frequently Asked Questions

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