Monthly repayment is based on a 30-year principal and interest loan. Interest-only repayments will be lower.
Tax benefit assumes your property loss is offset against your personal income at your marginal tax rate. This is the negative gearing benefit.
Annual expenses should include council rates, landlord insurance, property management fees (typically 7–10% of rent), and any maintenance allowance.
Negative Gearing Calculator
Calculate the tax benefit and net cost of a negatively geared investment property in Australia.
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Calculate your monthly mortgage repayments, total interest and loan balance in Australia.
Capital Gains Tax Calculator
Calculate capital gains tax on the sale of assets including property and shares in Australia.
Rental yield is the annual rental income expressed as a percentage of the property's purchase price. A gross yield of 4–5% is considered average in major Australian cities. Net yield subtracts expenses before dividing by the property price.
Negative gearing occurs when the costs of owning an investment property (interest, rates, insurance, management fees) exceed the rental income. The net rental loss can be offset against your other income, reducing your tax bill. In effect, the government shares part of your loss.
Deductible expenses include loan interest, council rates, land tax, landlord insurance, property management fees, maintenance and repairs, depreciation on the building and fixtures, and accountant fees related to the property. Capital improvements (not repairs) must be depreciated over time.
A positively geared property generates more rental income than it costs to hold — producing taxable income. A negatively geared property costs more to hold than it earns in rent — producing a tax-deductible loss. Most investors in Sydney and Melbourne are negatively geared due to high purchase prices relative to rents.
Yes. If you sell the property for more than you paid, the profit is subject to capital gains tax (CGT). If you have held the property for more than 12 months, you are entitled to a 50% CGT discount, meaning only half the gain is added to your taxable income. Use our Capital Gains Tax Calculator to estimate your CGT liability.