CDB vs LCA/LCI Comparison
Compare tax-exempt (LCA, LCI, CRI, CRA) with taxed (CDB, Debentures) fixed income.
Default example uses a 100% CDI CDB vs a 94% CDI LCA simulation.
No initial amount is needed because crossover timing depends on relative rates and taxes, not absolute capital.
Effective annualized rate chart by holding period. X axis starts at 0 and ends a few months after crossover.
Net CDB beats after 5 years and 3 months (63 months)
Real CDB applies Brazilian regressive income tax on total nominal gain (including IPCA in IPCA+ mode).
User Guide & Methodology
This calculator compares Taxable assets against Tax-Exempt assets. While the default is CDB vs. LCA, the logic applies to any fixed-income pair with the same indexing (CDI or IPCA+), such as Standard vs. Incentivized Debentures or CDBs vs. CRI/CRA.
1. The Weight of Maturity
The longer the time to maturity, the more competitive a CDB becomes relative to an LCA. This happens for two primary reasons:
- Regressive Tax Table: Income tax on CDBs decreases over time, dropping from 22.5% to a minimum rate of 15% after 720 days.
- Compound Interest on Face Value: Since the tax on a CDB is only paid at redemption, compound interest works on the gross value (which is higher) throughout the investment. In the long run, this larger base tends to make the LCA's tax exemption less relevant, allowing the CDB to win the comparison.
2. CDI vs. IPCA+
For inflation-indexed bonds, tax is levied on the total gain (IPCA + Fixed Rate). In high-inflation scenarios, tax-exempt assets like CRIs and Incentivized Debentures gain a disproportionate advantage, as you don't pay tax on the monetary correction of your principal. To use the inflation-adjusted version, simply select "IPCA+" in the "Mode" field above and enter the expected inflation rate.
3. Private Credit (Debentures, CRI, CRA)
You can use this simulator to compare standard Debentures with tax-exempt papers. Just remember that, unlike CDBs/LCAs, these assets are not covered by the FGC (Credit Guaranty Fund), requiring a more careful analysis of the issuing company's risk.
Regressive Tax Table (IR)
- Up to 180 days22.5%
- 181 to 360 days20.0%
- 361 to 720 days17.5%
- Over 720 days15.0%
Common Pitfalls
- Gross Rate Illusion: An IPCA+ 8% Debenture might yield less than an IPCA+ 6.5% CRA depending on the maturity date.
- Inflation Effect: In IPCA+ bonds, tax "eats" part of your protected purchasing power, as the government taxes the inflationary adjustment as profit.
The Math of Equivalence
Real Return Calculation
Equivalent Tax-Exempt Rate
Variable Legend
- r = Net Real Rate
- i = Gross Nominal Rate
- I = Inflation (IPCA)
- y = Exempt Rate (LCA/CRI)
- x = Taxable Rate (CDB)
- IR = Tax Rate (Income Tax)