Negative Gearing Calculator Australia
Estimate annual loss, tax savings, and after-tax cash flow for Australian property investment scenarios.
What negative gearing means
Negative gearing happens when deductible property expenses are higher than rental income, which can reduce taxable income for Australian property investors.
What this calculator shows
- Estimated annual rental loss or surplus before tax
- Estimated tax savings based on salary and deductible expenses
- Annual and weekly after-tax cash flow for the property
Who should use it
Australian property investors comparing rents, interest rates, deposits, and holding costs before buying, refinancing, or reviewing an existing investment property.
Tax Comparison
π Annual Income & Expense Breakdown
π Negative Gearing Key Points
- β’ Negative gearing β losing money, it's a tax strategy
- β’ Property depreciation is the biggest deduction source
- β’ Management fees and interest are fully deductible
- β’ A professional depreciation schedule is required
- β’ Converting owner-occupied to investment may affect CGT
π 2024-25 Tax Brackets
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Explore more tools to compare borrowing, upfront costs, tax impact, and home-buying strategy in one workflow.
Negative gearing FAQ
Last updated: February 20, 2026
How does negative gearing reduce tax?
If your deductible rental property expenses are higher than your rental income, the loss can reduce your taxable income. The dollar value of that benefit depends on your marginal tax rate and what deductions you can legitimately claim.
What expenses should I include in a negative gearing calculator?
Include loan interest, property management fees, council rates, insurance, maintenance, water charges, depreciation, and other recurring property costs that affect taxable income or cash flow.
Is negative gearing worth it in 2026?
It depends on the full investment case. Tax savings can improve after-tax cash flow, but they do not automatically make a poor asset or weak cash-flow position worthwhile. Investors should compare rent, growth assumptions, funding costs, and risk tolerance together.
Compare with related tools
Use the repayment calculator for loan structure, the tax calculator for broader cash-flow context, and the rentvesting calculator for strategy comparison.
Official References
Negative gearing calculations should align with current tax definitions and rates.
- According to the ATO definition of rental property outcomes, negative gearing occurs when deductible property costs exceed rental income.
- According to the ATO resident tax rates, tax benefit estimates depend on the taxpayer's marginal tax bracket.
Reviewed: March 3, 2026