Investment Property Calculator — ROI, Tax & Cash Flow

This calculator combines four analyses into one: negative gearing (tax offset and after-tax weekly cost), rental yield (gross and net), state/territory land tax (including ACT and TAS; NT has no land tax (NT.GOV.AU — Property taxes)), and capital gains tax (with 50% CGT discount (ATO — CGT discount)). Enter property details once to produce a combined financial summary. Uses 2025-26 ATO rates (ATO — Tax rates for Australian residents) and state revenue office thresholds.

What does this investment property calculator analyse?

Analysing an Australian investment property typically involves several calculations: rental yield, negative gearing, land tax, and a CGT estimate for the sale scenario. This calculator combines those four into a single set of inputs, producing a combined financial summary.

The following table summarises each calculation module, what question it answers, and how it connects to the other modules. The land tax estimate feeds into both the negative gearing and net yield calculations, so all four modules work together from a single set of inputs.

How are the numbers connected?

The calculator uses your inputs to run four independent calculations, with one important link: the land tax estimate is included as an annual holding cost in both the negative gearing and net yield calculations. Everything else is kept separate so you can see each lens clearly.

Negative gearing estimates tax savings and after-tax holding cost from rent, deductible cash expenses (including interest), and depreciation. Rental yield shows income performance excluding your mortgage — net yield includes non-mortgage holding costs. Land tax estimates the state land tax payable from your taxable land value. CGT estimates the extra income tax attributable to a capital gain in the year you sell.

What assumptions and simplifications does this calculator make?

To keep the tool simple and static, it makes a few deliberate simplifications:

• Holding costs are simplified: you enter one total for annual non-interest holding costs (rates, water, insurance, management, repairs, strata, etc.). The dedicated negative gearing calculator provides a full expense breakdown if you want more detail.
• Land tax is simplified: it is calculated from your entered taxable land value and selected state using individual owner assumptions. Exemptions, trust/company rules, foreign owner surcharges, and detailed aggregation rules are not modelled.
• Negative gearing uses current income tax settings (as configured in the site) and includes Medicare levy and LITO. It does not include HELP/HECS, Medicare Levy Surcharge, PAYG withholding variations, or other offsets.
• CGT is simplified: it assumes an Australian resident individual and applies the 50% discount when held for more than 12 months. It does not include the main residence exemption or capital losses from other assets.
• Vacancy is modelled, rent growth is not: rental income uses your weeks rented per year input; weekly rent is assumed flat (no growth).

Worked Example: Evaluating an Adelaide House

Mei, 31, is a nurse in Adelaide earning $85,000. She is considering purchasing a 3-bedroom house for $550,000 in Adelaide’s western suburbs. Here is how the four modules work together.

Property inputs:

• Purchase price: $550,000
• Weekly rent: $490 (52 weeks = $25,480/year)
• Loan: $440,000 at 6.3% (interest = $27,720/year)
• Non-interest holding costs: $9,200/year (insurance $1,600, management $2,038, council rates $1,800, water $1,100, repairs $1,200, other $1,462)
• Depreciation: $5,500 (Div 43) + $1,800 (Div 40) = $7,300/year
• Land value: $320,000 (SA)
• Land tax: Nil (SA threshold is $833,000)

Module 1: Negative gearing result

• Gross rental income: $25,480
• Total deductions: $44,220 (interest + costs + depreciation)
• Net rental loss: -$18,740
• Tax saving (at Mei’s ~32% marginal rate): ~$5,997
• Cash out-of-pocket: $11,440/year ($220/wk)
• After-tax cost: $5,443/year ($105/wk)

Module 2: Rental yield

• Gross yield: $25,480 / $550,000 = 4.6%
• Net yield (after non-mortgage costs + land tax): ($25,480 - $9,200) / $550,000 = 3.0%

Module 3: Land tax

• SA: Nil ($320,000 is below SA’s $833,000 threshold)
• For comparison, the same land value in VIC would attract ~$1,445 in land tax

Module 4: CGT estimate (10-year exit at 5% growth)

• Projected sale price in 10 years: ~$895,870
• Agent commission (2.5%): ~$22,397
• Cost base (purchase + stamp + legal + improvements - Div 43): ~$571,750
• Capital gain: ~$301,723
• After 50% discount: ~$150,862
• Estimated CGT: ~$50,389

Combined picture: The property costs Mei approximately $105 per week after tax during the holding period. Over 10 years, the total after-tax holding cost is approximately $54,430. The projected capital gain (after CGT) is approximately $251,334. Total estimated return: approximately $196,904 on an initial cash outlay of $132,000 (deposit + purchase costs).

For more detailed analysis of each component, use our dedicated calculators: negative gearing for full expense breakdown, land tax for multi-state comparison, depreciation for Div 40 and Div 43 estimates, and CGT for hold-vs-sell analysis.

Capital Growth vs Rental Income: Where Your Returns Actually Come From

Most rental yield calculators only show yield — the rental income component. But for Australian investment properties, capital growth typically drives 60-70% of total returns over a 10-year holding period.

Mei’s 10-year return breakdown:

This illustrates why focusing solely on rental yield can be misleading. A property with a 3% net yield but 5% annual capital growth generates far more total return than a property with a 5% yield and 2% growth. The total return — combining income and growth — is what matters.

Sensitivity to growth assumptions: A 1% change in annual capital growth changes the 10-year total return by approximately $80,000-$100,000 on a $550,000 property. If Adelaide grows at 3% instead of 5%, Mei’s capital gain drops from ~$301,723 to ~$188,700 — a $113,000 difference. The growth assumption is the most important variable in any property investment projection.

CAGR vs Gross Yield: Understanding the Full Picture

Two numbers are commonly quoted when evaluating an investment property: rental yield and compound annual growth rate (CAGR). They measure different things and should not be confused.

• Gross rental yield = Annual rent / Purchase price. Mei’s property: $25,480 / $550,000 = 4.6%. This measures income performance only and ignores capital growth.
• CAGR = (End value / Start value) ^ (1/years) - 1. If Mei’s property grows from $550,000 to $895,870 over 10 years, CAGR = 5.0%. This measures growth only and ignores rental income.
• Total return CAGR combines both income and growth into a single annualised figure. For Mei: approximately 7.5% per year including rental income and growth, before tax.

Most “rental yield calculators” only show the first number. This calculator shows all three lenses together, so you can assess the complete investment case.

Go Deeper with the Full Spreadsheet

Compare up to 5 properties side by side with our premium spreadsheet — including portfolio-level tax modelling that accounts for how each property affects your marginal tax rate. Add multi-year projections, hold-vs-sell analysis, and interest rate sensitivity testing in one connected model.

If you want a simpler tax-time tracker first, the ATO rental property worksheet focuses on income, deductions, and net rental position for your return.

Compare all spreadsheet options in our investment property spreadsheet guide — covering free calculators, DIY Excel, paid templates, and premium Google Sheets.

Getting close to 30 June? Use our EOFY tax planning guide to review deduction strategies before the financial year ends, or work through the EOFY property investor checklist to make sure nothing is missed.