Investment Property Calculator
Model an Australian investment property using 2025-26 or 2026-27 tax settings: purchase costs, loan repayments, expenses, depreciation, after-tax cash flow and a long-term before-sale-CGT position.
1. Purchase costs
Stamp duty, FHOG, legal, inspection, loan, LMI.
2. Loan & serviceability
3. Year-1 cashflow
The selected resident rates, LITO and individual Medicare thresholds are held constant across the projection.
Your taxable income excluding this property's rental result.
Benchmark total: $16,000.00 a year. Switch to actuals before relying on the result.
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. | Rental result | Tax change | After-tax /wk | Property value | Equity |
|---|---|---|---|---|---|---|---|---|
| 1 | $27,500.00 | $35,800.00 | $10,250.00 | −$34,550.00 | −$11,056.00 tax | −$396.00 | $832,000.00 | $239,368.00 |
| 2 | $28,325.00 | $35,345.00 | $9,450.00 | −$32,470.00 | −$10,390.00 tax | −$393.00 | $865,280.00 | $280,471.00 |
| 3 | $29,175.00 | $34,863.00 | $8,810.00 | −$30,498.00 | −$9,759.00 tax | −$389.00 | $899,891.00 | $323,387.00 |
| 4 | $30,050.00 | $34,350.00 | $8,298.00 | −$28,598.00 | −$9,151.00 tax | −$384.00 | $935,887.00 | $368,200.00 |
| 5 | $30,951.00 | $33,807.00 | $7,888.00 | −$26,743.00 | −$8,562.00 tax | −$378.00 | $973,322.00 | $414,996.00 |
| 6 | $31,880.00 | $33,229.00 | $7,561.00 | −$24,910.00 | −$8,259.00 tax | −$366.00 | $1,012,255.00 | $463,867.00 |
| 7 | $32,836.00 | $32,616.00 | $7,299.00 | −$23,078.00 | −$7,965.00 tax | −$353.00 | $1,052,745.00 | $514,909.00 |
| 8 | $33,822.00 | $31,965.00 | $7,089.00 | −$21,233.00 | −$7,675.00 tax | −$340.00 | $1,094,855.00 | $568,221.00 |
| 9 | $34,836.00 | $31,275.00 | $6,921.00 | −$19,359.00 | −$7,386.00 tax | −$326.00 | $1,138,649.00 | $623,908.00 |
| 10 | $35,881.00 | $30,541.00 | $6,787.00 | −$17,447.00 | −$6,804.00 tax | −$317.00 | $1,184,195.00 | $682,081.00 |
Next best steps
Negative gearing occurs when deductible rental-property amounts exceed assessable rent. Through 2026-27, an eligible loss may reduce other taxable income. From 2027-28, this purchase model treats new homes as an exception and quarantines excess deductions for an established residential home bought after the statutory cutoff.
Estimated tax effect = Tax without property − tax after rental result
Shortcut example: A $10,000 loss wholly within a 32% income-tax-plus-Medicare band is approximately $3,200. Thresholds and offsets can change this.
The following is a marginal-rate shortcut only; the calculator uses the full before-and-after tax difference:
| Taxable income | Rate incl. Medicare | Approx. effect per $10k loss |
|---|---|---|
| $45,001 – $135,000 | 32% | $3,200 |
| $135,001 – $190,000 | 39% | $3,900 |
| $190,001+ | 47% | $4,700 |
2026-27 resident marginal rate + 2% Medicare levy. LITO and family Medicare thresholds can lower the effective rate near the bottom of each bracket.
Immediately deductible
Depreciation (non-cash deductions)
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 |
| 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).
Take the identical property from the example above — same $27,500 rent and $38,863 total expenses, so the same $11,363 net rental loss — but the owner is David, who earns $160,000 and sits in the $135,001 – $190,000 bracket at a combined 39% (37% + 2% Medicare).
| Item | Amount |
|---|---|
| Net rental loss (same property as above) | −$11,363 |
| Marginal rate incl. Medicare | 39% |
| Tax benefit ($11,363 × 39%) | $4,432 |
| Cash shortfall (unchanged) | −$5,363 |
| After-tax cost ($5,363 − $4,432) | $931/year ($18/week) |
Same property, same $11,363 loss — but David's higher marginal rate turns it into a larger tax benefit and roughly half Sarah's after-tax weekly cost. This is why negative gearing's dollar benefit scales with your tax bracket, not with the property.
Priya earns $100,000 and owns an older, largely paid-down investment property rented at $650/week. Her rental income exceeds her deductible expenses, so the property is positively geared:
| Item | Amount |
|---|---|
| Rental income (50 weeks × $650) | $32,500 |
| Loan interest (small remaining balance) | −$5,000 |
| Council rates | −$2,500 |
| Water rates | −$1,100 |
| Insurance | −$1,500 |
| Property management (7.5%) | −$2,438 |
| Repairs | −$1,200 |
| Depreciation (older build) | −$3,000 |
| Total expenses | −$16,738 |
| Net rental income | $15,762 |
| Extra tax ($15,762 × 32%) | −$5,044 |
Priya's cash expenses (excluding depreciation) are $13,738, so her cash surplus before tax is $18,762. After paying $5,044 in extra tax on the net rental income, her after-tax cash surplus is $13,718/year. Unlike a negatively geared property, this position adds to her taxable income rather than reducing it — there is no tax benefit to offset, only extra tax on genuine profit.
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.
| 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 |
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?
What changes for established properties from 2027-28?
Is a positively geared property still worth buying?
Tax Accuracy & Sources
Models purchase costs, loan cash flow, entered or benchmark annual expenses, simplified Div 43 and Div 40 depreciation, resident income tax after LITO and individual Medicare levy, and the legislated 2027-28 residential loss quarantine for a modelled current purchase. For projected sales after 1 July 2027, positions exclude sale CGT because indexation, transitional gain allocation and the 30% minimum tax need a separate calculation. It does not model ownership shares, private-use apportionment, family Medicare thresholds, HELP repayment income, residential capital gains available to absorb quarantined losses or personalised deduction eligibility.