// PROPERTY TAX
Negative Gearing
Calculator
See your exact annual rental loss, tax refund from the ATO, net out-of-pocket cost, and the capital growth rate needed to make the investment worthwhile.
// PROPERTY
Investment property details
Property price$700,000
Deposit$140,000
Interest rate (p.a.)6.24%
Weekly rent$550/wk
// EXPENSES & TAX
Running costs and your tax position
Property management fee8.5%
Council rates + insurance$3,500
Maintenance (% of property value)0.5%
Depreciation (annual estimate)$5,000
Your gross income$120,000
Projected property growth (p.a.)5.0%
Projection horizon10 yrs
Annual rental loss
$20,775
Before tax
Tax refund / saving
$7,167
At 35% marginal + Medicare
After-tax cash flow
−$8,608/yr
$717/mo out of pocket
Break-even growth needed
1.23%
Annual capital growth to cover shortfall
// ANNUAL_CASH_FLOW
Full income and expense breakdown
Gross rental income+$28,600
Less: Loan interest−$34,944
Less: Property management−$2,431
Less: Council rates + insurance−$3,500
Less: Maintenance−$3,500
Less: Depreciation (non-cash)−$5,000
= Net rental income / (loss)−$20,775
+ Tax saving at marginal rate+$7,167
= After-tax cash flow−$8,608
// LOAN_DETAILS
Loan amount: $560,000Annual interest: $34,944Yield (gross): 4.09%Yield (net pre-tax): -2.97%
// 10-YEAR_PROJECTION
At 5% annual capital growth (simplified — interest-only loan basis)
| Year | Prop. value | Equity | Cum. tax savings | Net return |
|---|---|---|---|---|
| 1 | $735,000 | $175,000 | $7,167 | +$20,355 |
| 2 | $771,750 | $211,750 | $14,335 | +$42,158 |
| 3 | $810,338 | $250,338 | $21,502 | +$65,481 |
| 4 | $850,854 | $290,854 | $28,670 | +$90,401 |
| 5 | $893,397 | $333,397 | $35,837 | +$116,998 |
| 6 | $938,067 | $378,067 | $43,004 | +$145,355 |
| 7 | $984,970 | $424,970 | $50,172 | +$175,560 |
| 8 | $1,034,219 | $474,219 | $57,339 | +$207,705 |
| 9 | $1,085,930 | $525,930 | $64,506 | +$241,888 |
| 10 | $1,140,226 | $580,226 | $71,674 | +$278,211 |
General information only. This calculator uses simplified assumptions. It does not model principal and interest loan reduction, vacancy periods, or land tax. Depreciation estimates require a quantity surveyor report. The tax refund assumes the rental loss can be offset against your salary income in full (check with your accountant if your situation is complex). Not financial advice.