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    Can We Afford It?

    Investment calculator

    Negative Gearing Calculator

    Estimate the after-tax holding cost of an Australian investment property: rent less interest, depreciation, rates, insurance and management, then the tax saving at 2026–27 tax rates.

    Negative Gearing Calculator

    Uses 2026–27 ATO tax rates and the 2% Medicare levy, bracket by bracket.

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    Typically $6k–$12k/yr, depending on property age and fittings. Requires a formal quantity surveyor (QS) depreciation schedule. Interest-only loans maximise this benefit.

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    Used to work out the tax saving at 2026–27 rates, incl. Medicare levy.

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    Property management (8% of rent) included automatically. Note: only interest is tax-deductible, not principal repayments.

    Gearing status

    Negatively geared

    Costs exceed rental income. The shortfall is deductible against your other income.

    Annual rental income
    $31,200
    Interest cost (tax deductible)
    −$43,840
    Depreciation claim (tax deductible)
    −$8,000
    Other costs incl. PM 8% (tax deductible)
    −$5,996
    Taxable rental loss / gain
    -$26,636/yr
    Tax saving (32.0% of the loss, bracket by bracket)
    +$8,524/yr
    Net annual cost after tax benefit
    $10,112/yr

    $194/wk out of pocket, after tax

    Tax brackets used (2026–27): $0–$18.2k: 0% · $18.2k–$45k: 17% · $45k–$135k: 32% · $135k–$190k: 39% · $190k+: 47% (incl. Medicare levy)
    Depreciation schedules, BMT ↗ Tax agents, H&R Block ↗

    Estimates only, not financial or tax advice. Tax outcomes depend on your individual circumstances. Consult a registered tax agent (Tax Practitioners Board) or financial adviser before making investment decisions.

    How negative gearing works

    An investment property is negatively geared when its deductible costs (interest, depreciation, rates, insurance and property management) exceed the rental income.

    The loss is offset against your other income (salary), which lowers your taxable income for the year. The tax saving covers part of the holding cost.

    Key deductible expenses: Loan interest (not principal), depreciation (Division 40 & 43), council rates, landlord insurance, property management fees, repairs and maintenance, and accounting/legal fees related to the property.

    Important: The depreciation deduction requires a formal report from a registered Quantity Surveyor (QS) such as BMT. Without this schedule, the ATO may disallow the claim.

    Yield and capital gains tax

    Calculate rental yield. Estimate CGT on sale.

    Rental Yield CalculatorCapital Gains Tax Estimator

    Landlord insurance

    Landlord insurance covers loss of rent, tenant damage, and public liability. It is fully tax-deductible as a rental property expense.

    Compare landlord insurance, iSelect ↗

    Related calculators

    Rental Yield CalculatorCalculate gross and net yield on your investmentRefinancing CalculatorEstimate the saving from switching to a lower rateCapital Gains Tax CalcEstimate CGT when you sell an investment property

    General Advice Warning

    The information on this site is general in nature and does not consider your personal circumstances, financial situation, or needs. Before acting on any information, you should consider its appropriateness having regard to your own situation and seek professional advice from a licensed financial adviser, mortgage broker, accountant, or solicitor.