Negative gearing calculator
When rent does not cover the interest and expenses, the shortfall is deductible against your other income. This shows both numbers: what leaves your account, and what it costs after the refund.
Enter the loan, the rent, and what it costs to hold.
What the property costs you each year
- Rent received
$31,200$31,200 - Interest
$37,800$37,800 - Taxable rental loss
$21,600$21,600
Broken down
Try a scenario
How this is calculated
The cash position and the tax position are shown separately, because they are not the same number.
- Interest
- Calculated as the loan balance times the rate, so it assumes an interest-only position. A principal and interest loan pays slightly less interest each year as the balance falls.
- Rent
- The weekly figure times 52, with no allowance for vacancy. Two weeks empty is common, so trim it if you want a conservative number.
- Depreciation
- Treated as a deduction that costs no cash. It reduces the cost base of the property, so it comes back as extra capital gains tax when you sell.
- Not included
- Land tax, capital growth, principal repayments, and the fact that a large rental loss can drop you into a lower bracket, which would reduce the refund.
This calculator is for general information only and is not tax, financial or property advice. It excludes capital growth, land tax, vacancy, and the CGT consequences of claiming depreciation. Get a quantity surveyor report before relying on a depreciation figure.
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