CDB or LCI? Simulate Brazil's Net Yields

Discover exactly how the Brazilian regressive Income Tax bracket impacts your fixed-income returns, mathematically revealing their liquid potential over time.

Inputs

The Math Behind It

CDB: Total - Regressive Tax | LCI: Total Exempt

For CDI-indexed papers, interest compounds using equivalent daily rates ((1+Annual Rate)^(days/252)). The CDB deducts a specific Regressive Income Tax bracket (22.5% strictly down to 15%) from the profit margin. LCI/LCA linearly compounds purely up to its defined CDI offering without any tax deduction at source (0%).

Example

If you hold R$ 10,000 in a CDB offering 110% CDI for exactly 360 days, your capital gains will be taxed at 20%. However, pushing the maturity date past 720 days drops the IR to a minimal tier of 15%, historically overtaking standard LCI yields even factoring in taxation offsets.

Official Sources & Validity

Calculations verified against current legislation.

Brazilian IRS Regressive IR Bracket
Brazilian Core Interbank Rates (CDI)

Frequently Asked Questions

The Federal Revenue mitigates taxes strictly based on capital detention timelines: 1 to 180 days is subjected to 22.5%. 181 to 360 incurs 20%. Moving from 361 to 720 days demands 17.5%. Past an aggressive 720-day mark, the state only deducts 15% of total profitability margins.

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