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Negative Gearing Calculator

Negative Gearing Calculator helps you estimate net property income and annual tax benefit for Australia using Property Value (your currency), Annual Rental Income (your currency), and Loan Interest Rate (%). Use it to compare scenarios before making a final decision.

Last reviewed 15 August 2026

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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 realistic Australia planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic Australia planning example
InputValue
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. Then rerun the tool with one input adjusted.

How to read your results

Net Property Income

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

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.

Gross Rental Yield

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Total Deductions

The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.

Marginal Rate

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

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.

Frequently asked

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.

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