Investment Property Cash Flow & Negative Gearing Calculator Australia
Thinking about a rental, or holding one already? Drop in the price, rent, loan and costs and we'll work out your rental yield, the yearly cash flow before and after tax, the negative gearing benefit, and what it really costs you each week.
- Gross rental income$0
- Loan interest$0
- Other expenses$0
- Cash flow before tax$0
- Gross rental yield0%
- Net rental yield0%
- Tax loss (incl. depreciation)$0
- Cash flow after tax$0
Enter a purchase price, rent and loan to see your numbers.
Want this run on your real figures, with a depreciation schedule and the right ownership structure?
Talk to a property accountant →General information only, current for the 2025-26 financial year. This estimate uses interest-only loan repayments, applies the full rental loss against your income at one marginal rate, and ignores the low-income Medicare levy reduction, joint or trust ownership splits, capital works recoupment on sale and CGT. It is not personal tax advice. For numbers you can plan around, talk to us.
A Few Things This Calculator Assumes
What is negative gearing?
A property is negatively geared when its deductible costs (loan interest, expenses and depreciation) are more than the rent it brings in. That loss reduces your other taxable income, so you pay less tax. The benefit is the tax you save, worked out at your marginal rate, not a cheque from the ATO. You are still out of pocket on the actual cash shortfall, just less so after the refund.
Why is the after-tax cash flow better than before tax?
Because depreciation is a paper deduction. It lowers your taxable income and your tax bill, but no cash leaves your pocket for it. So the tax refund can be larger than the real cash shortfall, which lifts your after-tax position. That is the appeal of a depreciation schedule on newer or renovated properties.
What rate of return is a good rental yield?
Gross yield is annual rent divided by purchase price. Net yield takes out the running costs first. In Australian capital cities, gross yields of roughly 3% to 5% are common, with regional and unit markets often higher. A lower yield is not automatically bad, many investors accept it for stronger capital growth, but it usually means a larger cash top-up while you hold.
Does this include capital growth or capital gains tax?
No. This is a holding-cost calculator, it shows what the property does to your cash and tax each year. It does not model the property going up in value, nor the CGT when you sell (where the 50% discount applies if you have held for over 12 months as an individual). We map both the holding strategy and the eventual sale when we plan a portfolio with you.
Make the Property Work Harder at Tax Time
Book a call with an accountant who lives in rental schedules, depreciation and ownership structures. We'll pressure-test the numbers and show you how to hold it tax-smart.
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