Investment Property Calculator
Project cash flow, interest, principal repayments, equity and capital growth year by year — with Australian negative gearing, depreciation and stamp duty built in.
Disclaimer: This calculator provides general information only and does not constitute financial advice, tax advice or a product recommendation. Consult a qualified financial advisor, accountant or licensed conveyancer before making investment decisions.
✓ Your inputs are saved automatically in this browser.
Enter your details above and click Calculate & Project to see the year-by-year projection.
Year-by-year projection
Annual cash flow breakdown — year 1
How this calculator works
Every year of your projection is computed independently and then chained: rental income grows at your rent-increase rate, expenses inflate at your assumed inflation rate, the loan follows a proper amortisation schedule (including any interest-only period transitioning to principal and interest), and property value compounds at your growth assumption. Tax is applied at your marginal rate to the property's taxable income — a loss produces a refund (negative gearing), a profit produces additional tax payable.
What makes this different from simpler rental yield calculators
Most free Australian calculators give you a single-year snapshot: gross yield, maybe a rough weekly cash flow. This tool tracks the full picture across your holding period — how equity builds as the loan amortises while the property appreciates, how cash flow shifts when interest-only periods end, and how the tax effect changes as rent growth outpaces expense growth. The projection table lets you see exactly when the property turns positively geared.
Frequently asked questions
What is negative gearing and how does it work in Australia?
Negative gearing is when the costs of owning a rental property — loan interest, operating expenses and depreciable items — exceed the rental income it generates. The loss is deductible against your other taxable income (such as salary), reducing the tax you pay. If you earn $100,000 and your property loses $10,000 a year, you are taxed on $90,000, effectively returning a share of the loss at your marginal tax rate. This calculator applies 2025-26 marginal rates plus Medicare levy to estimate that effect year by year.
How much deposit do I need for an investment property?
Most lenders require a 20% deposit for an investment property to avoid lenders mortgage insurance (LMI). On a $600,000 property that is $120,000 plus stamp duty and purchase costs of roughly 4–6%. Some lenders accept 10–15% with LMI added to the loan. A larger deposit reduces interest and improves cash flow — model both options here.
What costs do landlords typically underestimate?
Vacancy periods (budget 2–4% of rent), maintenance and repairs (older homes often need 1–1.5% of property value per year), property management fees (5–8% of rent plus letting fees), landlord insurance, strata levies for units, and special levies for building repairs. This calculator lets you enter each separately so nothing hides inside an averaged rate.
How does depreciation affect my investment property tax return?
Depreciation is a non-cash deduction. Capital works deductions allow 2.5% per year of qualifying construction costs for up to 40 years, and plant and equipment items are depreciated over their effective lives. Because depreciation reduces taxable income without costing cash, it can turn a cash-flow-positive property into a tax-negative one — the refund improves your cash position. Only enter amounts a quantity surveyor has confirmed.
What is a good rental yield in Australia?
Gross yield (annual rent divided by purchase price) typically sits around 3–4% in capital cities and 4–6% regionally. Net yield, after operating costs, is usually 1–2 percentage points lower. Higher-yield properties tend to have stronger cash flow but often weaker capital growth prospects — this calculator projects both side by side.
Cash flow vs capital growth — which matters more?
Strong capital growth with heavy negative gearing suits high-income investors who can fund the shortfall. Positive cash flow suits investors building a portfolio or approaching retirement. Model both over your full holding period, including how interest-only reverting to principal-and-interest changes the picture, and judge the total return.