Negative Gearing Calculator

How to Use the Negative Gearing Calculator

This calculator is designed to help property investors estimate the financial impact of owning an investment property, compare keeping savings in an offset account versus investing them elsewhere, and forecast capital growth over a 10-year period.

1. Enter Your Personal Details

Fill in:

• Gross Annual Salary – your total income before tax.

• Marginal Tax Rate (%) – your current marginal income tax rate.

• Current Offset Account Balance – how much you have in your offset account.

• Alternative Investment Return (% p.a.) – the expected annual return if you invest these funds elsewhere.

2. Enter Your Investment Property Details

Include:

• Purchase Price – the total cost of the property.

• Deposit – the upfront payment you will make.

• Interest Rate (% p.a.) – your loan’s annual interest rate.

• Weekly Rent – how much you expect to receive from tenants.

• Expected Capital Growth (% p.a.) – your estimated property value growth per year.

• Tick Interest Only Loan if applicable.

3. Add Your Annual Expenses

Enter all property-related expenses, including:

• Water rates, council rates, strata/body corporate fees, insurance, maintenance/repairs

• Property management fees (% of rent)

• Depreciation and other annual costs

4. What the Calculator Does

The calculator will:

• Determine your loan amount and annual rental income

• Calculate your annual expenses (interest + running costs)

• Work out your rental profit or loss and any tax savings from negative gearing

• Compare your financial position with and without the investment property

• Analyse Offset Account vs Alternative Investment returns

• Provide a recommendation on which option offers the greater annual benefit

5. 10-Year Projection

The tool also projects:

• Capital Growth over 10 years

• Total Cash Benefits from rental income and tax savings

• Total Return (capital growth + cash benefits)

• ROI on your deposit as an annualised percentage