Useful next calculations
When to use this calculator
- Before buying, renting, refinancing or reviewing a property investment.
- When you want to compare cash flow, tax, yield or ownership costs.
- When you need a fast estimate before speaking to an agent, lender or adviser.
- When you want to see how a rate or price change moves the result.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Property Value (A$) | A$600,000 |
| Annual Rental Income (A$) | A$24,000 |
| Loan Interest Rate (%) | 6.5% |
| Loan Amount (A$) | A$480,000 |
For those figures the calculator returns:
- Net property income: A$-12,200.00
- Annual tax benefit: A$3,660.00
- After-tax out-of-pocket cost: A$8,540.00
- Gross rental yield: 4.00%
- Total deductions: A$36,200.00
- Marginal rate: 30.00%
How to read your results
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.
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.
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.
- 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.
Questions people ask
Negative gearing occurs when the costs of owning an investment property — including loan interest, council rates, insurance, property management fees, and depreciation — exceed the rental income it generates. In Australia, this net rental loss can be deducted from your other taxable income, such as salary or wages, reducing your overall tax bill for the year. The ATO treats property as a business investment, so genuine deductible expenses directly reduce assessable income at your marginal rate, making negative gearing more valuable the higher your income.