Negative Gearing Spreadsheet Australia (Free + Premium)

A negative gearing spreadsheet helps Australian property investors calculate the tax benefit of holding a negatively geared investment property. It models the gap between rental income and deductible expenses, applies the investor’s marginal tax rate, and shows the after-tax cost of holding the property. You can use our free web calculator for a quick estimate, or the premium spreadsheet for multi-property comparison and multi-year projections.

What does a negative gearing spreadsheet calculate?

A negative gearing spreadsheet takes your rental property income and expenses and calculates three key numbers:

1. Net rental loss — the annual shortfall between rent received and total deductible expenses (interest, rates, insurance, management fees, repairs, depreciation, land tax)
2. Tax saving — the reduction in your income tax resulting from that loss being deducted against your other income
3. After-tax holding cost — the real weekly or monthly cost of owning the property after the tax benefit is applied

The table below shows how the tax saving varies by marginal rate for a $15,000 net rental loss in 2025—26.

Source: (ATO — Tax rates for Australian residents). 2025-26 rates for Australian residents.

An investor earning $120,000 with a $15,000 rental loss saves approximately $4,500 in tax, reducing the real cost of that loss to $10,500 for the year (about $202 per week).

Negative gearing calculator

Free calculator vs premium spreadsheet

Use the free calculator for a quick estimate of your negative gearing tax saving on a single property. It takes less than a minute and uses current ATO rates.

Use the premium spreadsheet when you need to compare properties, model how your cash flow changes over time, or see how negative gearing connects with depreciation, land tax, and CGT in one integrated model.

View all tiers and pricing

How to calculate negative gearing in a spreadsheet

Whether you build your own spreadsheet or use ours, the core formula is straightforward:

Step 1: Calculate total rental income

Annual rental income = Weekly rent x 52

If the property was vacant for part of the year, adjust for vacancy weeks.

Step 2: List all deductible expenses

Add up every deductible expense for the year:

Step 3: Calculate the net rental loss

Net rental loss = Total deductible expenses - Annual rental income

If expenses of $45,000 exceed rental income of $28,600 (i.e., $550/week), the net rental loss is $16,400.

Step 4: Apply marginal tax rate

Tax saving = Net rental loss x Marginal tax rate

For an investor on a 30% marginal rate: $16,400 x 0.30 = $4,920 annual tax saving.

Step 5: Calculate after-tax holding cost

After-tax holding cost = Cash expenses - Rental income - Tax saving

Note that depreciation is excluded from cash expenses here because it does not cost anything out of pocket. If total cash expenses (excluding depreciation) are $37,000 and rent is $28,600, the pre-tax cash shortfall is $8,400. After the $4,920 tax saving, the after-tax cost is $3,480 per year, or approximately $67 per week.

Why Google Sheets instead of Excel?

Many investors search for a “negative gearing calculator excel” spreadsheet. We build for Google Sheets instead because:

• No cost — Google Sheets is free to use with a Google account
• Any device — access from your phone, tablet, or desktop
• Share easily — send a link to your accountant or partner
• Always saved — no risk of losing your file
• Export to Excel — download as .xlsx any time if you prefer Excel

The premium spreadsheet is designed and tested in Google Sheets. Excel export is supported, but some conditional formatting may look different.

What expenses can you claim through negative gearing?

The ATO allows deductions for expenses incurred in earning rental income (ATO — Common property expenses (rental)). The most commonly claimed expenses include:

• Loan interest — the interest component of your mortgage repayment (not the principal)
• Depreciation — non-cash deductions for the building and its fixtures
• Property management fees — typically 5—8% of rent collected
• Council rates and water charges
• Landlord insurance — building and landlord cover
• Repairs and maintenance — restoring to original condition (not improvements)
• Land tax — state-based annual tax on investment land
• Body corporate / strata fees — for apartments and townhouses
• Borrowing costs — deductible over 5 years or the loan term (whichever is shorter)

What you can claim depends on your circumstances. Use the ATO’s rental expenses page as the starting reference.

Common negative gearing mistakes to avoid

1. Claiming principal repayments. Only the interest portion of your mortgage is generally deductible. This is one of the most common errors the ATO identifies.
2. Confusing repairs with improvements. Replacing a broken tap (repair) is immediately deductible. Upgrading a kitchen (improvement) must be depreciated over time.
3. Forgetting depreciation. Depreciation does not cost you anything out of pocket but can add $5,000—$15,000 per year to your deductions, particularly on newer properties.
4. Not claiming in vacant periods. You can still claim expenses when the property is genuinely available for rent, even if temporarily vacant.
5. Mixed-use loan claims. If you used a redraw facility for personal expenses, only the investment portion of the interest is deductible.

Free calculator

The negative gearing calculator estimates your tax saving and after-tax holding cost using current ATO rates. Enter your rental income, expenses, and taxable income for a personalised estimate.

The premium spreadsheet adds multi-property comparison, multi-year projections, and integrated analysis with CGT, depreciation, and land tax.

Frequently asked questions

Is there a free negative gearing calculator?

Yes. Our free web-based negative gearing calculator uses 2025—26 ATO tax rates and shows your estimated annual tax saving, weekly out-of-pocket cost, and after-tax holding cost.

How much does negative gearing save on tax?

The saving depends on your marginal tax rate. A $15,000 net rental loss saves approximately $2,400 at 16%, $4,500 at 30%, $5,550 at 37%, or $6,750 at 45%. Use the free calculator to estimate your specific saving based on your actual income and expenses.

Can I compare negative gearing across multiple properties?

The free calculator handles one property at a time. The premium spreadsheet (Pro tier: up to 3 properties, Complete tier: up to 5 properties) lets you compare properties side-by-side, each with different income, expenses, and state-specific land tax rules.

Does the spreadsheet include depreciation?

Yes. The Pro and Complete tiers include full depreciation schedules for both Division 43 (building at 2.5% per year) and Division 40 (fixtures and fittings at varying rates). Depreciation is a non-cash deduction that increases your negative gearing benefit without costing anything out of pocket.

Do I need Excel for the negative gearing spreadsheet?

No. The premium spreadsheet is built for Google Sheets, which is free and works on any device. If you prefer Excel, you can download the Google Sheet as an .xlsx file at any time.

What is the formula for negative gearing?

Negative gearing = total deductible expenses minus total rental income. If the result is positive (expenses exceed income), you have a net rental loss. That loss is multiplied by your marginal tax rate to determine your tax saving.

Disclaimer

This page is general information only and is not tax advice, financial advice, or a recommendation to buy, sell, or hold any investment property. Tax outcomes depend on your personal circumstances and tax rules can change. Consider speaking with a registered tax agent or accountant for advice specific to your situation.