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GrowThenDraw
Updated for 2026–27

Investment Property Calculator Australia

Test the whole property decision: rent and vacancy, loan payments, deductible expenses, negative gearing, first-year after-tax holding cost, break-even rent and projected equity under the enacted 2027 rules.

Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources

Property and loan

$
$

Enter applicable duty, conveyancing, inspections and other acquisition cash costs. This page does not calculate state-specific duty.

%

Rent, property value, costs and non-cash deductions are apportioned by this percentage.

$

Enter the loan amount attributable to your share and to earning rent—not private redraws.

%
years

Rent and annual cash expenses

$
weeks
%
$
$
$
$

Enter ordinary deductible repairs. Initial repairs and capital improvements can have different treatment.

$

Use your state or territory estimate; thresholds and aggregation rules are not calculated here.

$

Tax deductions and 2027 treatment

$

Enter a supported amount from your records or depreciation schedule.

$
$

For example the deductible annual portion of eligible borrowing expenses. Do not duplicate cash expenses entered above.

$

Enter taxable income after non-property deductions and before this rental result.

The selection models treatment; it cannot determine whether a transaction meets the statutory definition.

Projection assumptions

years
%
%
%
%
Estimated first-year cash contribution after tax
$303
per week; Established dwelling acquired after the cutoff
Annual cash flow after tax
-$15,754
Gross rental yield
4.5%
Net yield before finance
2.5%
Taxable rental result
-$30,476
One assumption at a time

Stress-test this property plan

Your current inputs become the saved baseline. Each button applies one transparent change, so a stronger tax result cannot hide a weaker cash-flow result.

Choose a test. Nothing has been applied yet.

Saved baseline / week
-$303
Tested cash flow / week
Choose a test
Weekly change
—
Equity change at horizon
—

Stress tests change the calculator inputs and full charts. They are comparisons, not forecasts or lender serviceability tests.

First year and horizon
Collected rent
$32,500
Interest / principal
$37,301 / $7,031
Tax saving / (extra tax)
$9,752
Break-even weekly rent
$1,148
Neutral gearing year
Beyond horizon
Equity at horizon
$502,511
Initial cash invested
$185,000
Scenario wealth change
$102,724
Running costs: $13,675Loan interest: $37,301Loan principal: $7,031
Running costsLoan interestLoan principalExtra tax
$504K$1M2026–27: $179,531 equity, $592,969 loan2026–27: $179,531 equity, $592,969 loan2027–28: $210,189 equity, $585,486 loan2027–28: $210,189 equity, $585,486 loan2028–29: $242,023 equity, $577,522 loan2028–29: $242,023 equity, $577,522 loan2029–30: $275,086 equity, $569,045 loan2029–30: $275,086 equity, $569,045 loan2030–31: $309,432 equity, $560,023 loan2030–31: $309,432 equity, $560,023 loan2031–32: $345,118 equity, $550,421 loan2031–32: $345,118 equity, $550,421 loan2032–33: $382,204 equity, $540,202 loan2032–33: $382,204 equity, $540,202 loan2033–34: $420,753 equity, $529,324 loan2033–34: $420,753 equity, $529,324 loan2034–35: $460,832 equity, $517,748 loan2034–35: $460,832 equity, $517,748 loan2035–36: $502,511 equity, $505,426 loan2035–36: $502,511 equity, $505,426 loanY1Y3Y5Y7Y9Y10
Loan balanceOwner equity

Year-by-year property projection

FYCollected rentInterestTaxable rental resultTax saving / (extra tax)After-tax cash flowQuarantined lossOwner equity
2026–27 $32,500 $37,301 -$30,476 $9,752 -$15,754 $0 $179,531
2027–28 $33,475 $36,849 -$29,402 $0 -$24,885 $29,402 $210,189
2028–29 $34,479 $36,367 -$28,279 $0 -$24,243 $57,681 $242,023
2029–30 $35,514 $35,855 -$27,104 $0 -$23,581 $84,785 $275,086
2030–31 $36,579 $35,310 -$25,875 $0 -$22,897 $110,659 $309,432
2031–32 $37,676 $34,730 -$24,588 $0 -$22,191 $135,248 $345,118
2032–33 $38,807 $34,112 -$23,242 $0 -$21,462 $158,490 $382,204
2033–34 $39,971 $33,455 -$21,833 $0 -$20,710 $180,323 $420,753
2034–35 $41,170 $32,755 -$20,357 $0 -$19,933 $200,679 $460,832
2035–36 $42,405 $32,010 -$18,811 $0 -$19,132 $219,490 $502,511
Transparent and reproducible

Calculation audit trail

The opening result below is generated by the same calculation engine used when you change the form. It is published so the cash-flow and tax sequence can be checked without relying on a headline number alone.

Opening verification example

$750,000 property; $600,000 principal-and-interest loan at 6.25%; $650 weekly rent; 2 vacancy weeks; and $100,000 other taxable income.

Collected rent
$32,500
Loan interest
$37,301
Loan principal
$7,031
Taxable rental result
-$30,476
Tax saving / (extra tax)
$9,752
After-tax cash flow
-$15,754

Boundary checks maintained with the engine

  • 2026-27 wage-offset treatment and the enacted 2027-28 loss quarantine are tested separately.
  • Qualifying new dwellings, grandfathered interests and later use of quarantined losses have dedicated cases.
  • Principal-and-interest amortisation, interest-only treatment, ownership shares and break-even rent are checked independently.
  • Every published stress preset is checked against an unchanged saved baseline.

Rule set reviewed 2 August 2026. Read the broader calculation methodology and the official sources below.

Gearing and cash flow are different answers

A property is negatively geared when its deductible rental expenses exceed its assessable rental income. It can still require more cash than the taxable loss suggests because loan principal is a cash payment but not an income-tax deduction. Depreciation and capital works can create the opposite gap: they may reduce taxable rental income without being a current cash payment.

This calculator therefore keeps three numbers separate: the taxable rental result, cash flow before tax and cash flow after the estimated tax impact. A label such as ‘negatively geared’ does not by itself tell you whether the investment is affordable or attractive.

What changes from 1 July 2027

For 2026–27, the calculator allows an eligible residential rental loss to reduce the entered other taxable income. From 2027–28, Schedule 2 of the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 generally quarantines excess residential dwelling deductions instead of allowing them to offset wages.

The enacted exceptions include an ownership interest last acquired before 7:30 pm ACT legal time on 12 May 2026 and a new residential dwelling in relation to the taxpayer. For an established property acquired after the cutoff, the model carries the quarantined amount forward and applies it against later positive residential rental income. It does not apply that amount to a residential capital gain because this page does not model a sale.

Interest follows the use of the borrowed money

The ATO treatment depends on what borrowed funds were used for, not simply which property secures the loan. Interest on money used privately is not converted into a rental deduction by offering an investment property as security. Redraws, refinances, mixed-purpose loans and private use can require apportionment.

The model treats the entered loan as wholly attributable to earning rent and separates interest from principal each month. If that does not describe the loan, enter only the investment portion or use a tax agent’s apportionment before relying on the result.

Use your records for depreciation and buying costs

Capital works and decline-in-value deductions depend on construction history, asset type, acquisition date, prior use and other facts. The calculator accepts annual claims from your records or quantity-surveyor schedule; it does not invent a depreciation deduction from the property price.

Transfer duty, conveyancing, inspections, buyers-agent fees and loan costs also vary by state and circumstance. Enter the buying costs that apply to your scenario. They affect initial cash invested and the scenario return, but the page does not treat them automatically as annual rental deductions.

A projection is a stress test, not a forecast

Rent growth, expense growth, property growth, interest rates and taxable income are editable assumptions. The projection holds the entered interest rate and annual non-cash deductions constant, uses the legislated resident tax rates currently scheduled from 2027–28 and does not predict refinancing, vacancies, major works or market prices.

Run a conservative case as well as an optimistic one. A useful property decision should survive lower rent, more vacancy, higher costs and zero price growth—not depend on one smooth ten-year line.

Frequently asked questions

How do I calculate whether an investment property is negatively geared?

Subtract deductible rental expenses—including eligible interest and entered non-cash deductions—from assessable rent. A negative result is negatively geared. Loan principal is excluded from that tax calculation even though it affects cash flow.

Can an investment property be negatively geared but cash-flow positive?

It is possible because non-cash deductions can create a taxable loss without an equal cash outflow. The reverse is also possible when principal repayments make cash flow negative even though the property is positively geared for tax.

What happens to negative gearing in Australia from 1 July 2027?

Under enacted 2026 legislation, excess deductions for affected residential dwellings are generally quarantined from 2027–28 instead of reducing wages. Interests last acquired before the 12 May 2026 cutoff and qualifying new residential dwellings are among the exceptions.

What is the break-even weekly rent?

The result is the approximate first-year weekly rent at which after-tax cash flow reaches zero using the entered vacancy, management fee, expenses, loan and tax assumptions. It is not a market-rent estimate.

Does the calculator include stamp duty and land tax?

It does not calculate state-specific amounts. Enter applicable acquisition costs in purchase costs and your annual land-tax estimate in running expenses. Eligibility, thresholds and ownership structures differ by state and territory.

Does the calculator work out depreciation?

No. Enter the annual decline-in-value and capital-works deductions supported by your records or schedule. Eligibility is too fact-specific to infer honestly from a headline percentage of the purchase price.

Does projected equity include capital gains tax on sale?

No. Equity is the projected value of your ownership share minus the projected loan balance. Selling costs and CGT are excluded; use the separate current-year Australian CGT calculator for an ordinary 2026–27 disposal estimate.

Rules verified 2 August 2026 against official Australian sources:

Scope: Australian-resident individual, long-term residential rental and the entered legal ownership share. Assumes the investment loan is wholly attributable to earning rent and the property is rented or genuinely available. Excludes private-use apportionment, trusts, companies, SMSFs, non-residents, short-stay or development businesses, state duty and land-tax engines, HELP, Medicare thresholds and surcharge, tax offsets other than LITO and the 2027 WATO, sale costs and CGT. Educational estimate only.