Example result based on the prefilled values.
Net Property Income
A$-12,200.00
Annual Tax Benefit
A$3,965.00
After-Tax Out-of-Pocket Cost
A$8,235.00
Gross Rental Yield
4.00%
Total Deductions
A$36,200.00
Marginal Rate
32.50%
Continue your plan
Useful next calculations
When to use this calculator
- Before buying, renting, refinancing, or reviewing a property investment.
- When you want to compare cash flow, yield, growth, and ownership costs side by side.
- When you need a fast estimate before speaking to an agent, lender, or adviser.
- When you are assessing whether a rental property still makes financial sense after a mortgage rate change.
- When you want to compare the total cost of renting against owning over a five- or ten-year horizon.
A realistic Australia planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Property Value (A$)
A$700,000
Annual Rental Income (A$)
A$80,000
Loan Interest Rate (%)
A$560,000
Loan Amount (A$)
A$560,000
After entering these figures, review net property income, annual tax benefit and after-tax out-of-pocket cost together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Net Property Income
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Annual Tax Benefit
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.
After-Tax Out-of-Pocket Cost
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.
Gross Rental Yield
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Total Deductions
This is the headline outcome of the calculation, but it is most useful when read alongside the supporting metrics below it rather than in isolation. Try changing one input at a time and watching how this total moves to understand which driver has the biggest impact.
Marginal Rate
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
This calculator uses the 2024/25 Australian resident income tax brackets to quantify the annual tax benefit generated by a negatively geared investment property. It sums all allowable deductions — loan interest, operating expenses, and non-cash depreciation — then subtracts rental income to arrive at the net property income. That figure is then combined with employment income to calculate a tax comparison: the difference between tax payable with and without the property loss is the annual tax benefit. The after-tax out-of-pocket cost is the cash shortfall remaining after the tax saving is applied.
Depreciation is a powerful non-cash deduction that reduces taxable income without requiring an actual cash outlay each year. Results are for general guidance only and exclude the Medicare Levy, HELP repayments, and state-based land tax. Consult a registered tax agent or financial adviser before making investment decisions.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
- Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.
Frequently asked
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