Negative Gearing Calculator

Find your real after-tax cost when negatively gearing an investment property. Includes depreciation, ATO tax brackets, CGT and capital growth modelling.

Negative Gearing Calculator

Calculate your annual tax benefit from negative gearing, true after-tax holding cost, and the full return when you factor in capital growth.

Your Income

Annual Taxable Income$120k

Property

Purchase Price$750k
Deposit20% ($150k)
Interest Rate (IO)6.50% p.a.

Rental Income

Weekly Rent$550/wk

Annual Expenses

Council Rates$2k/yr
Insurance$2k/yr
Maintenance$2k/yr
Property Mgmt Fee8% of rent

Depreciation

Building (Div 43)$5k/yr
Fittings (Div 40)$3k/yr

Capital Growth

Annual Property Growth5.0% p.a.
Years Held10 years

Gearing Status

Negatively Geared

Annual rental loss: $26,188 (deductible)

Annual Tax Saving

$9,035

at 32.5% marginal rate

True After-Tax Cost

$9,153 /yr

$176/wk out of pocket

Annual Income & Expenses

Rental Income+$28,600
Interest (IO)−$39,000
Rates + Insurance + Maintenance−$5,500
Property Management−$2,288
Cash Shortfall / Surplus−$18,188
Depreciation (non-cash)−$8,000
Total Taxable Loss-$26,188
Tax Refund / Saving+$9,035

After 10 Years — Capital Growth

Estimated Property Value$1.22m
Capital Gain$472k
CGT (50% discount)−$77k
Total After-Tax Holding Cost−$92k
Net Return$303k

Uses 2024–25 ATO tax rates including 2% Medicare levy. IO loan assumed for gearing calculation. CGT 50% discount applies after 12 months. Depreciation entitlements vary — obtain a quantity surveyor's report. Not financial advice.