Estimate rental yield, cash flow, negative gearing tax benefit and total investment return before buying an Australian rental property.
📖 16 min read · ⏱️ Calculator time: ~1 minute
Property & Loan Details
Purchase price
$
Deposit
$
Stamp duty
$
Legal / conveyancing fees
$
Interest rate (p.a.)
%
Loan term
years
Repayment type
Rental Income
Weekly rent
$
Vacancy rate
%
Annual Expenses
Property management fee
%
Council rates
$
Water rates
$
Insurance
$
Maintenance
$
Body corporate (if applicable)
$
Land tax (if applicable)
$
Other annual expenses
$
Annual depreciation (from schedule)
$
Tax & Growth
Your marginal tax rate
%
Expected annual capital growth
%
Hold period
years
Investment Analysis
Gross Rental Yield
—
Metric
Value
Calculations are estimates only and do not constitute financial, taxation or investment advice. Consult a licensed financial adviser, mortgage broker and registered tax agent before investing.
🏦 Loan Summary
⚖️ Interest-Only vs Principal & Interest
📋 Expense Breakdown (Deductible vs Non-Deductible)
💵 Cash Flow Dashboard
📊 ROI & Cash-on-Cash Return
🏚️ Vacancy Simulator
📈 Interest Rate Simulator
💰 Rent Increase Simulator
📉 Break-Even Rent
🧮 Sensitivity Summary
🥧 Income vs Expenses
📈 Equity Growth Projection
⏱️ Last Updated: August 2026 | ✅ Reviewed by: Mohsin Iqbal — Australian Finance Content Review | Calculator methodology and general guidance reviewed regularly.
⚠️ Important: Calculations are estimates only and do not constitute financial, taxation or investment advice. Consult a licensed financial adviser, mortgage broker and registered tax agent before investing in property.
What Is a Rental Property Calculator?
A rental property calculator brings together the key financial metrics property investors need to assess a potential purchase — rental yield, cash flow, loan repayments, tax effects from negative gearing, and long-term return including capital growth. Rather than checking each figure separately, this calculator combines them into a single analysis so you can see the complete financial picture before committing to a purchase.
ℹ️ Key assumptions used throughout this calculator:
A constant interest rate for the full projection (no allowance for future rate changes, other than in the dedicated simulator)
A constant annual property growth rate (real markets move unevenly, not in a smooth straight line)
Flat weekly rent unless you explicitly change it in the Rent Increase Simulator
Selling costs assumed at 2.5% of the future sale price
A simplified Capital Gains Tax estimate — your actual CGT position may involve additional factors not modelled here (other capital losses, depreciation clawback, timing of sale within a financial year)
Who Is This Calculator For?
First-time property investors — get a clear, complete picture of yield, cash flow and tax effects before making your first investment purchase.
Experienced investors — quickly model a new acquisition against your existing portfolio criteria, or stress-test a property against rate rises and vacancy risk.
Buyers comparing properties — run the same inputs across multiple properties to compare yield, cash flow and projected return side by side.
Self-managed super fund (SMSF) investors — while this calculator doesn't model SMSF-specific rules (like limited recourse borrowing arrangements or contribution caps), the underlying yield, cash flow and return mechanics are a useful starting point; consult an SMSF specialist for the fund-specific structure.
Buyers considering positive or negative gearing — directly compare how your numbers change between the two, and see exactly how the tax effect softens (but doesn't eliminate) a negatively-geared cash shortfall.
Gross vs Net Rental Yield
Gross rental yield is your annual rent as a percentage of the purchase price — a quick, simple comparison figure. Net rental yield goes further, subtracting operating expenses (property management, council rates, insurance, maintenance and similar costs) from that income before dividing by the purchase price. Importantly, net yield in this calculator is a property-level metric — it deliberately excludes loan interest and financing costs, since those depend on how you personally finance the purchase, not on the property itself. This is the standard real-estate industry definition, and it's what lets you compare properties on a like-for-like basis regardless of financing structure.
Cash Flow Explained
Cash flow is different from yield — it's an investor-level metric that does include your loan repayments, since that's real money leaving your pocket each month. The calculator above models Principal & Interest repayments by default (not interest-only), since most investors are on P&I loans, and shows both pre-tax and after-tax cash flow. A property can have a healthy net yield and still be cash-flow negative once real P&I repayments are factored in — the Cash Flow Dashboard above makes this distinction clear.
Positive vs Negative Gearing
A property is negatively geared when your deductible expenses (loan interest, operating costs and depreciation) exceed your rental income, producing a tax-deductible loss. This loss reduces your taxable income, generating a tax benefit — the Cash Flow Dashboard above shows this as a positive "tax effect." A positively geared property, by contrast, produces a taxable profit, meaning you pay additional tax on the rental income. Neither is inherently "better" — it depends on your investment strategy, cash flow needs, and tax position.
Common Investment Expenses
Property management fees — typically 6-9% of rental income if you use an agent.
Council and water rates — ongoing local government and utility charges.
Landlord insurance — covers building, contents, and often loss of rent.
Maintenance and repairs — budget for ongoing upkeep; immediate repairs are generally deductible, while improvements are capitalised.
Body corporate fees — for units and townhouses in a strata scheme.
Land tax — applies in some states above a land value threshold, varying significantly by state and portfolio size.
Depreciation — a non-cash deduction from a quantity surveyor's schedule, covering building structure and eligible plant and equipment.
Capital Growth
Capital growth is the increase in a property's value over time, and for many investors it's the larger component of total return compared to rental yield. The Equity Growth Projection chart above models your property's value and loan balance together over your chosen hold period, showing how equity builds from both capital growth and loan paydown (if you're on Principal & Interest). Growth rates vary significantly by location and property type — treat any single assumed rate as illustrative, not a guarantee.
Vacancy Risk
Vacancy periods — time between tenants, or when a property can't be let — directly reduce your actual rental income below the "full occupancy" figure. The Vacancy Simulator above shows how your after-tax cash flow changes across a range of vacancy rates, from a well-managed 0% up to a more stressed 12%, helping you understand how much buffer your investment has if a vacancy period runs longer than expected.
ROI Explained
Return on Investment for a rental property is best understood in two parts: cash-on-cash return (your annual after-tax cash flow as a percentage of the cash you've actually put in — deposit, stamp duty and legal fees), and total return (which adds capital growth and equity built through loan paydown over your hold period). The ROI & Cash-on-Cash Return panel above shows both, along with a full projection to your chosen sale year including estimated CGT.
Worked Examples
Scenario
Key detail
What to notice
First investment property
$700k, 20% deposit, $650/wk rent
See base example in the calculator above
Positive cash-flow property
Higher rent relative to price
Test with the Rent Increase Simulator
Negative gearing example
Base case — P&I repayments exceed income
Tax effect softens but doesn't eliminate the cash shortfall
High-growth suburb example
Higher growth % assumption
See Equity Growth Projection chart
Apartment example
Add body corporate fees
Meaningfully affects operating expenses and net yield
House example
No body corporate, higher maintenance
Different expense profile to an apartment
Interest-rate increase scenario
+1% to +2%
See Interest Rate Simulator
Vacancy scenario
Vacancy rate 8-12%
See Vacancy Simulator
Enter each of these scenarios into the calculator above to see exact figures for your own numbers.
Common Mistakes
Confusing net yield with cash flow — net yield excludes financing costs; cash flow includes them. A property can look attractive on net yield alone and still be cash-flow negative.
Using interest-only repayments in cash flow projections when actually on Principal & Interest — this understates your real repayment; the calculator above defaults to P&I to avoid this.
Ignoring vacancy risk — assuming 100% occupancy overstates rental income; even well-managed properties typically have some vacancy between tenancies.
Overlooking stamp duty and legal fees in your total cash invested — these are real upfront costs that affect your cash-on-cash return, not just your deposit.
Not accounting for depreciation — this is a genuine, valuable deduction for many investors, particularly on newer properties, and skipping it overstates your tax liability.
Annual rent as a percentage of purchase price, before any expenses.
Net rental yield
Rent minus operating expenses, as a percentage of purchase price — excludes financing costs.
Negative gearing
When deductible expenses exceed rental income, producing a tax-deductible loss.
Cash-on-cash return
Annual after-tax cash flow as a percentage of total cash invested.
Depreciation
A non-cash tax deduction for the declining value of a building's structure and eligible fixtures.
Capital Gains Tax (CGT)
Tax on the profit from selling an asset; individuals get a 50% discount on gains from assets held over 12 months.
Cost base
The purchase price plus acquisition costs (stamp duty, legal fees), used to calculate the taxable capital gain on sale.
Conclusion
A rental property's attractiveness depends on more than any single number — yield, cash flow, tax effects and long-term capital growth all interact. Use the calculator above to see your own numbers across all of these dimensions, stress-test vacancy and rate scenarios, and understand your break-even rent before committing. Pair it with our Mortgage, LVR, LMI and Home Deposit calculators for the complete financing picture.
A tool combining rental yield, cash flow, negative gearing tax effects and long-term return into a single analysis, helping you assess a potential investment property before buying.
Gross yield is annual rent as a percentage of purchase price. Net yield subtracts operating expenses (but not financing costs) before dividing by purchase price — it's a property-level metric that lets you compare properties independent of how they're financed.
Most Australian property investors are on Principal & Interest loans, and using interest-only repayments in cash flow projections would understate your real repayment obligation. You can switch to interest-only in the calculator above if that matches your actual loan.
Deductible expenses include loan interest, property management fees, council and water rates, landlord insurance, repairs and maintenance, advertising for tenants, and depreciation on eligible assets. Capital improvements (not repairs) are added to the cost base rather than claimed immediately. Travel to inspect properties has not been deductible since 1 July 2017. This is general information only, not tax advice.
Two types of depreciation apply: capital works (2.5% of construction cost per year for buildings post-July 1985) and plant and equipment (for items like carpets and dishwashers). For properties purchased after 9 May 2017, plant and equipment depreciation only applies to new assets you install, not those existing when you bought the property. Consult a quantity surveyor for a formal depreciation schedule.
Repairs (restoring to original condition) are immediately deductible. Improvements (making something better than it was) are capital expenditure, either depreciable or added to the cost base. Work done immediately before a property is first rented is always treated as an improvement, not a repair.
Yes. All rental income must be declared in your tax return in the year it's received, including advance rent, retained bond money, and insurance payments for lost rent. You declare income and deductions on the rental properties schedule of your tax return.
Negative gearing occurs when your deductible property expenses (loan interest, operating costs and depreciation) exceed your rental income. The resulting loss is deductible against your other income, reducing your tax bill — though you're still out of pocket for the underlying cash shortfall.
It depends on your goals, cash flow capacity and expectations for capital growth — negative gearing trades short-term cash flow for a tax benefit, generally as part of a longer-term capital growth strategy. It's not universally "good" or "bad"; discuss your specific situation with a financial adviser.
This varies significantly by location and property type — inner-city apartments often show lower yields with higher growth potential, while regional houses often show higher yields with more modest growth. There's no universal "good" figure; compare yield alongside growth prospects and your own investment goals.
This depends on the lender and your circumstances, but 20% is common to avoid LMI — see our dedicated Home Deposit and LMI calculators for a fuller breakdown of deposit requirements and LMI costs.
Yes, the same LVR-based rules apply as for owner-occupier loans — see our dedicated LMI Calculator for an estimate based on your deposit and property value.
Your annual after-tax cash flow as a percentage of the total cash you've actually invested — deposit plus stamp duty and legal fees. It measures the cash-flow return on the money you put in, separate from any capital growth.
CGT is calculated on the sale price minus selling costs minus your cost base (purchase price plus acquisition costs like stamp duty and legal fees). Individuals who've held the property over 12 months receive a 50% discount on the taxable gain. This is general information only, not tax advice.
Generally the purchase price plus acquisition costs like stamp duty and legal/conveyancing fees, plus certain capital improvements made during ownership. Depreciation claimed may reduce your cost base ("clawback") — consult a registered tax agent for your specific situation.
Interest-only can maximise short-term cash flow and the deductible interest portion, but doesn't reduce your loan balance. Principal & Interest costs more per period but builds equity faster. See our dedicated Interest-Only Mortgage Calculator to compare both structures in detail.
Vacancy rate is the proportion of time a property sits untenanted. It directly reduces your actual rental income below full-occupancy projections — the Vacancy Simulator above shows how your cash flow changes across a range of vacancy assumptions.
It uses standard Australian rental property formulas and proper loan amortisation, tested against manual calculations. It's an educational estimate, not financial, taxation or investment advice — actual figures depend on your specific lender, tax situation and property.
Yes — include body corporate fees in the relevant input, since these are a significant ongoing cost for units and townhouses in a strata scheme that houses typically don't have.
Yes — enter your estimated annual land tax in the relevant input. Land tax varies significantly by state, land value and total landholding, so check your specific state revenue office for an accurate figure.
The weekly rent needed to cover your operating expenses and loan repayment (after accounting for the depreciation tax shield), at your assumed vacancy rate. The Break-Even Rent panel above calculates this directly for your own numbers.
Yes — run the calculator once for each property's figures and compare the results side by side. There's currently no built-in side-by-side comparison view, so note down each property's key figures as you go.
Yes, directly — a rate rise increases your loan repayment, which reduces your cash flow. The Interest Rate Simulator above shows the effect of a range of rate changes on your repayment and after-tax cash flow.
A standard mortgage calculator focuses on loan repayments alone. This calculator adds the investment-specific layers — rental income, operating expenses, tax effects from negative gearing, and long-term return including capital growth and CGT — relevant specifically to an investment purchase.
This depends on your broader financial and tax situation, and has significant long-term implications — this calculator doesn't model different ownership structures. Consult a registered tax agent or financial adviser before deciding on a structure.
You can set the property management fee to 0% if you're self-managing — just remember to account for your own time and effort, and any costs you incur directly (advertising, inspections, tenant screening) elsewhere in your expenses.
Positive gearing means your rental income exceeds your deductible expenses, producing a taxable profit — you'll pay tax on this additional income at your marginal rate, but you're also generating positive cash flow rather than needing to fund a shortfall.
Yes, though note that most first-home-buyer grants and concessions require the property to be owner-occupied, not rented out — check your eligibility for any schemes separately if you're considering this path. See our Home Deposit Calculator for scheme details.
Not as a separate line item — include these one-off costs in your legal fees or other upfront cost inputs if you'd like them reflected in your total cash invested figure.
Individuals (not companies) who hold an investment property for more than 12 months before selling only pay tax on 50% of the capital gain, at their marginal tax rate. The calculator above applies this discount in the ROI & Cash-on-Cash Return projection.
It's your deposit plus stamp duty and legal fees — the real cash you put in upfront. It matters because cash-on-cash return measures your cash flow against this figure, not against the full purchase price, giving a more accurate picture of your actual return on capital.
Yes — adjust the hold period input above (1 to 40 years) to see how your projected equity, capital gain and total profit change over different timeframes.
The results focus on annual figures for clarity, but you can use the CSV export for a year-by-year property value, loan balance and equity schedule across your hold period.
Increase the vacancy rate input to reflect the expected time to find a tenant, or model a higher vacancy rate for the relevant period — this will reduce your effective rent and cash flow accordingly for your planning purposes.
Yes — lenders typically factor in your investment property's rental income (often at a discounted rate, commonly 70-80%) and its repayments when assessing your capacity for further borrowing. See our House Affordability Calculator for a borrowing capacity estimate.
Capital growth strategies prioritise properties expected to appreciate significantly in value, often at the cost of lower rental yield and near-term cash flow. Yield-focused strategies prioritise properties with strong rental income relative to price, often in areas with more modest growth. Many investors blend both approaches.
Yes — the calculator's mechanics are the same regardless of location; just ensure you use realistic local figures for rent, vacancy rate, expenses and expected capital growth, since these vary significantly outside major cities.
No — investors generally don't qualify for first-home-buyer stamp duty concessions. Use our dedicated Stamp Duty Calculator to get an accurate figure for your state and enter it directly into this calculator's stamp duty field.
This calculator doesn't model a mid-hold refinance directly — rerun the calculator with your new rate and remaining loan balance to see the effect on your ongoing cash flow from that point forward. See our Refinance Calculator for the switching decision itself.
The main projection assumes flat rent for simplicity — use the Rent Increase Simulator above to see the effect of a one-off rent increase, or manually adjust your weekly rent input to model rent growth over time.
This depends on your goals, risk tolerance, timeframe and overall financial position — property and shares have different risk, liquidity and leverage characteristics. This calculator can help you understand a property's numbers, but the property-versus-shares decision should involve a licensed financial adviser.
This calculator models an established property purchase; for a build or off-the-plan purchase with progress payments, see our dedicated Construction Loan Calculator alongside this one for the ongoing rental analysis once complete.
Commonly 6-9% of rental income, though this varies by state, agency and service level — some agencies charge additional fees for leasing, inspections or advertising, so check the full fee schedule when comparing property managers.
Indirectly — by showing you the yield, cash flow and return at different purchase prices, you can see how much you could pay while still meeting your investment criteria. Rerun the calculator at different purchase prices to compare.
Generally yes — pre-approval gives you a clearer sense of your borrowing capacity and strengthens your position when negotiating, similar to purchasing an owner-occupied home. See our House Affordability Calculator for an estimate before applying.
Income Tax Calculator Australia is coming soon as the cornerstone of MegaCalcOnline's upcoming Tax Hub.
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