Property ROI Calculator Australia
See what your investment property actually returns on the cash you put in. This calculator includes loan leverage and capital growth — the things rental yield ignores — to give you a year-1 cash-on-cash return, a total ROI over your holding period, and an annualised return figure you can compare against any other investment.
Property & Finance
Under 20% usually requires LMI — include in acquisition costs
Stamp duty + conveyancing + inspections + LMI if applicable
Interest-only assumption (principal repayments increase your equity, not your return)
Rental Income
Rates, insurance, strata, management, maintenance. Excl. loan interest.
Growth Assumptions
AU long-term average: ~5–6%. Conservative: 3–4%.
Agent commission + marketing. Typical 2–3%.
Year 1 Breakdown
End of Year 10 (Sale)
Total ROI
Year-by-year breakdown
| Year | Value | Rent | Interest | Cashflow | Cumulative |
|---|---|---|---|---|---|
| 1 | $832,000 | $30,000 | $39,680 | -$18,680 | -$18,680 |
| 2 | $865,280 | $30,900 | $39,680 | -$18,050 | -$36,730 |
| 3 | $899,891 | $31,827 | $39,680 | -$17,401 | -$54,131 |
| 4 | $935,887 | $32,782 | $39,680 | -$16,733 | -$70,864 |
| 5 | $973,322 | $33,765 | $39,680 | -$16,044 | -$86,908 |
| 6 | $1,012,255 | $34,778 | $39,680 | -$15,335 | -$102,243 |
| 7 | $1,052,745 | $35,822 | $39,680 | -$14,605 | -$116,848 |
| 8 | $1,094,855 | $36,896 | $39,680 | -$13,853 | -$130,701 |
| 9 | $1,138,649 | $38,003 | $39,680 | -$13,078 | -$143,779 |
| 10 | $1,184,195 | $39,143 | $39,680 | -$12,280 | -$156,059 |
ROI Formula
Cash Invested = Deposit + Stamp Duty + Other Acquisition Costs
Year 1 Cash-on-Cash = (Annual Rent − Expenses − Loan Interest) / Cash Invested × 100
Total Net Return = Net Sale Proceeds + Cumulative Cashflow − Cash Invested
Annualised Return = (Final Equity / Cash Invested)1/years − 1
Worked Example: 10-Year Hold
A $800,000 Sydney property, 20% deposit ($160,000), $45,000 in acquisition costs. Weekly rent $600 × 50 weeks = $30,000. Annual expenses $9,000. Loan $640,000 at 6.2% interest-only = $39,680 interest. Assumes 4% capital growth, 3% rent growth, 2.5% selling costs, 10-year hold.
- Cash invested: $205,000
- Year 1 cashflow: $30,000 − $9,000 − $39,680 = -$18,680
- Year 1 cash-on-cash: -9.1% (holding cost)
- Property value year 10: $1,184,000 (4% p.a.)
- Net sale proceeds: $1,184,000 − 2.5% selling − $640k loan = $514,400
- Cumulative cashflow (10yr): roughly -$130,000
- Total net return: $514,400 − $130,000 − $205,000 = $179,400
- Total ROI: ~87%, annualised ~6.5% p.a.
This example shows why capital growth matters so much in AU property: the investor absorbs 10 years of negative cashflow, but leverage amplifies the growth on $800k (not just $205k invested) to produce an acceptable return.
When Property ROI Beats ETFs
- Strong growth markets — 5%+ capital growth with modest cashflow drag easily beats ETF benchmarks once leveraged.
- Long holds — transaction costs (stamp duty + selling) are amortised over more years.
- Value-add — renovations, subdivision, or zoning changes boost ROI beyond raw market growth.
- Tax benefits — negative gearing and depreciation convert cashflow drag into tax deductions. This is the additional upside not modelled here.
Frequently asked questions
What is ROI on an investment property?
What is cash-on-cash return?
Why compare leveraged vs unlevered returns?
What capital growth rate should I assume?
Does this include tax benefits like negative gearing?
Why interest-only loan assumption?
What is a 'good' property ROI in Australia?
Tax Accuracy & Sources
This calculator is pre-tax and uses interest-only loan mechanics. It models compound capital and rent growth based on your assumptions. Actual returns depend on market conditions, individual tax positions, and time-varying loan rates.