Investment Property Calculator Australia

Investment Property in Australia 2025: Understanding Your True Return

Investment property is Australia's most popular asset class — over 2 million Australians own at least one investment property. But calculating a property's true return requires looking beyond the rental yield to include mortgage costs, tax benefits, depreciation, and capital growth. This calculator does all of that in one place.

Gross vs Net Rental Yield

Gross rental yield = annual rent ÷ property price × 100. A property renting at $550/week for $650,000 has a gross yield of 4.4%. Net yield accounts for expenses (rates, insurance, management, repairs) and is typically 1–2% lower than gross yield.

Negative Gearing — How the Tax Benefit Works

A property is negatively geared when rental income is less than deductible expenses. The shortfall (loss) is deducted from your other income, reducing your taxable income and generating a tax refund. At a 37% marginal rate, a $10,000 annual loss generates a $3,700 tax refund — effectively reducing your out-of-pocket holding cost.

Depreciation — The Non-Cash Deduction

Building depreciation (Division 43) and plant and equipment depreciation (Division 40) are non-cash deductions you can claim on investment properties. A new property typically generates $8,000–$15,000/year in depreciation claims. A quantity surveyor's depreciation schedule (typically $600–$800) often pays for itself many times over in tax savings.

Estimates only. Property investment involves significant risk. Consult a licensed financial adviser and registered tax agent before investing. Not financial advice.