Investment Property Calculator Australia
A five-module hub for Australian property investors. Work through purchase costs, loan serviceability, year-1 cashflow, depreciation (Div 43 + Div 40), and a multi-year projection with sale-year CGT and an ETF comparison — all on one page, all sharing the same inputs. Deep-dive links to each dedicated calculator let you drill into a single module when you need more detail.
Based on 2025-26 tax rates. Assumes Australian tax resident.
1. Purchase costs
Stamp duty, FHOG, legal, inspection, loan, LMI.
2. Loan & serviceability
3. Year-1 cashflow
Expenses auto-fill from typical benchmarks based on price. Use the dedicated calculators for line-by-line control.
4. Depreciation (Div 43 + Div 40)
Simplified: DV 10-year life. Use dedicated calc for per-asset schedule.
5. 10-year projection & sale scenario
| Yr | Rent | Interest | Deprec. | Net | Tax benefit | After-tax /wk | Property value | Equity |
|---|---|---|---|---|---|---|---|---|
| 1 | $27,500.00 | $35,800.00 | $14,250.00 | $-38,550.00 | $12,336.00 | $372.00 | $832,000.00 | $239,368.00 |
| 2 | $28,325.00 | $35,345.00 | $11,050.00 | $-34,070.00 | $10,902.00 | $383.00 | $865,280.00 | $280,471.00 |
| 3 | $29,175.00 | $34,863.00 | $9,130.00 | $-30,818.00 | $9,862.00 | $387.00 | $899,891.00 | $323,387.00 |
| 4 | $30,050.00 | $34,350.00 | $7,978.00 | $-28,278.00 | $9,049.00 | $386.00 | $935,887.00 | $368,200.00 |
| 5 | $30,951.00 | $33,807.00 | $7,287.00 | $-26,142.00 | $8,370.00 | $382.00 | $973,322.00 | $414,996.00 |
| 6 | $31,880.00 | $33,229.00 | $6,872.00 | $-24,221.00 | $8,039.00 | $370.00 | $1,012,255.00 | $463,867.00 |
| 7 | $32,836.00 | $32,616.00 | $6,623.00 | $-22,403.00 | $7,749.00 | $357.00 | $1,052,745.00 | $514,909.00 |
| 8 | $33,822.00 | $31,965.00 | $6,474.00 | $-20,618.00 | $7,479.00 | $344.00 | $1,094,855.00 | $568,221.00 |
| 9 | $34,836.00 | $31,275.00 | $6,384.00 | $-18,823.00 | $7,214.00 | $329.00 | $1,138,649.00 | $623,908.00 |
| 10 | $35,881.00 | $30,541.00 | $6,331.00 | $-16,990.00 | $6,626.00 | $320.00 | $1,184,195.00 | $682,081.00 |
Next best steps
How Negative Gearing Works
Negative gearing occurs when your rental property expenses exceed your rental income, creating a tax loss. This loss can be offset against your other income (like salary), reducing your total taxable income and therefore your tax bill.
The Tax Benefit Calculation
Tax Benefit = Rental Loss × Marginal Tax Rate
Example: $10,000 loss × 32% marginal rate = $3,200 tax saving
Who Benefits Most?
Higher income earners benefit more from negative gearing because of higher marginal tax rates:
| Taxable Income | Marginal Rate | Tax Benefit per $10k Loss |
|---|---|---|
| $45,001 – $135,000 | 32% | $3,200 |
| $135,001 – $190,000 | 39% | $3,900 |
| $190,001+ | 47% | $4,700 |
What Expenses Can You Claim?
Immediately Deductible
- Loan interest – Interest on your investment loan (not principal repayments)
- Council rates – Annual rates paid to local council
- Water rates – Service charges and usage (unless tenant pays)
- Insurance – Building, landlord, and contents insurance
- Property management – Agent fees (typically 5-10% of rent)
- Repairs & maintenance – Fixing existing items to their original condition
- Body corporate – Strata fees for units and townhouses
- Land tax – State-based tax on investment property land value
- Advertising – Costs to find tenants
- Cleaning & gardening – Between tenancies
- Pest control – Regular treatments
Depreciation (Non-Cash Deductions)
- Capital works (Division 43) – Building structure depreciation at 2.5% per year
- Plant & equipment (Division 40) – Fixtures, appliances, carpets etc.
Tip: Get a depreciation schedule from a quantity surveyor. The cost ($500-$800) is tax-deductible and typically identifies $5,000-$10,000+ in annual deductions, especially for newer properties.
Worked Example
Sarah earns $100,000 and owns an investment property rented at $550/week. Here's her annual position:
| Item | Amount |
|---|---|
| Rental Income (50 weeks × $550) | $27,500 |
| Less Expenses: | |
| Loan interest | -$24,000 |
| Council rates | -$2,400 |
| Water rates | -$1,100 |
| Insurance | -$1,800 |
| Property management (7.5%) | -$2,063 |
| Repairs | -$1,500 |
| Depreciation | -$6,000 |
| Total Expenses | -$38,863 |
| Net Rental Loss | -$11,363 |
| Tax Benefit ($11,363 × 32%) | $3,636 |
Sarah's cash expenses (excluding depreciation) are $32,863. With rent of $27,500, her cash shortfall is $5,363. After the $3,636 tax benefit, her after-tax cost is just $1,727/year ($33/week).
Cash vs Tax Loss
It's important to understand the difference between your cash position and your tax position:
| Type | What It Includes | Impact |
|---|---|---|
| Cash flow | Rent received minus cash expenses paid | Money in/out of your bank |
| Tax loss | Cash expenses plus depreciation | Deductions on your tax return |
Depreciation is a "paper loss" — it reduces your taxable income without costing you actual cash. This makes your tax loss larger than your cash loss, increasing your tax benefit.
Frequently asked questions
What is negative gearing?
What expenses can I claim on a rental property?
How much tax will I save with negative gearing?
What is depreciation and how do I claim it?
Should I negatively gear a property?
Can I claim loan principal repayments?
Tax Accuracy & Sources
Estimates rental income, deductible expenses, and negative gearing tax benefit from the inputs entered. It does not calculate CGT on sale, stamp duty, or depreciation schedules.