Negative Gearing Calculator

Taxable Income (before Gearing)

please enter Taxable Income

Property Details
  
Property Price

please enter Property Price

Loan Value

please enter Loan Value

Interest Rate %

lease enter Interest Rate

Capital Appreciation of Property per Annum %

please enter Capital Appreciation of Property per Annum
Rental Income Per Week

please enter Rental Income Per Week
Number of Weeks Rented per Year

Number of Weeks Rented per Year
Expenses per year

please enter Expenses: Leasing Fees, Body Corporate, Rates, Repairs
Depreciation per year

please enter Depreciation
 
Summary
After Tax Cash
Profit / (Loss)per Week
$0
Years until Cashflow Positive
0 years
Key Ratios
Net Rental Return
0%
LVR Ratio (Loan to Value Ratio)
0%


The information required is:

  • Your taxable income as the benefit of negative gearing changes significantly with your income level.
  • The cost of the property
  • The loan amount
  • The interest rate on the loan
  • Expected long term (10 years) capital appreciation on the property. This information is used for calculating the number of year until the property is cash flow positive as rental increases will follow capital appreciation over the long term. The expected capital appreciation rate will be different depending on the type of property, its location and future economic conditions.
  • Rental Income per week – How much gross rental you expect to receive each week.
  • Number of weeks rented per year – The default will be 52 weeks, but it may be prudent to allow say 50 weeks for changeover between tenants.
  • Annual Expenses – such as agents leasing fees, strata fees, council rates, repairs, insurance etc. Read more about what expenses you can claim.
  • Depreciation - including the depreciation on the building, plant and fixtures. It can be estimated at this stage but for your tax return, you will require a quantity surveyors report.  Depreciation on investment properties is often forgotten and as the negative gearing calculator will show you, it has a major impact on the holding cost of the property.

The negative gearing calculator will enable you to determine the effect of:

  • Interest rate rises and falls
  • Rent increases
  • Changes in the gearing ratio

The negative gearing calculator will also enable you to compare the cost of different properties and show how much the Australian Tax Office will assist you in buying your property.

Disclaimer: Our negative gearing calculator is a guide only and should not be considered as investment advice. The calculator is not comprehensive and provides only a simple overview. The benefits of negative gearing may differ depending upon your individual financial circumstances. You should obtain advice from your accountant before purchasing a negative geared investment property.