Free calculator — yield, cashflow & 10-year return
Investment Property Calculator
Calculate gross yield, net yield, weekly cashflow, and the after-tax impact of negative gearing. See your 10-year total return including capital growth.
Negatively geared
This property loses $18,400/yr before tax. The tax saving ($5,980/yr) partially offsets the loss. Note: from 1 July 2027, negative gearing is restricted to new builds.
Gross yield
3.81%
$28,600/yr rent
Net yield
2.75%
After expenses
10-year total return
$236k
Capital growth + cumulative after-tax cashflow at 4%/yr
Property value
$1.11M
Estimates only. Capital growth not guaranteed. Not financial advice.
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See my full plan →How to evaluate an Australian investment property
Most property investors look at gross yield first — it's the simplest comparison. But net yield (after rates, insurance, management fees, and maintenance) is a more honest picture of what the property actually returns. For a typical established house with $10,000/year in expenses, the gap between gross and net yield is 1.5–2%.
Negative gearing is frequently misunderstood. A tax saving does not make a loss profitable — it makes a loss smaller. At a 37% marginal rate, the government covers 37 cents of every dollar lost. You still lose 63 cents. The bet is that capital growth will more than compensate for cumulative cash losses. The CGT calculator shows the tax cost of eventually selling.
From 1 July 2027, negative gearing is restricted to new builds for properties purchased after that date. Existing investors and properties purchased before 1 July 2027 are grandfathered. If you are comparing a new build versus established property, this policy change materially affects the after-tax maths.
Frequently asked questions
What is the difference between gross yield and net yield?
Gross yield is simply annual rent divided by the purchase price — it ignores all costs. Net yield subtracts annual expenses (council rates, insurance, property management fees, repairs and maintenance) from rent before dividing by purchase price. Net yield is the more meaningful figure for comparing properties. A property grossing 5% with $15,000/year in expenses on a $600,000 property has a net yield of closer to 2.5%. Always compare net yields, not gross.
What is negative gearing and how does the tax benefit work?
A property is negatively geared when the interest and expenses exceed the rental income — the property runs at a cash loss. The Australian tax system allows you to deduct this loss against your other income (salary), reducing your taxable income. The tax saving is your marginal tax rate multiplied by the loss. At 37%, a $10,000/year loss saves $3,700 in tax. This does not make the property cash-flow positive, but it reduces the after-tax cost. Note: from 1 July 2027, negative gearing will be restricted to new builds for properties purchased after that date.
What expenses should I include?
Typical annual investment property expenses include: council rates ($1,500–$3,000), water rates ($800–$1,500), landlord insurance ($1,500–$2,500), property management fees (7–10% of rent), repairs and maintenance (allow 1% of property value), strata fees if applicable, and accounting/tax agent fees. A rough rule is to budget $8,000–$15,000/year for a standard residential property, though this varies significantly by state, property age, and whether you self-manage.
What is a good rental yield in Australia?
In capital cities, gross yields of 3–4% are typical for established houses, with units running slightly higher at 4–5%. Regional areas and outer suburbs can reach 5–7%. Net yields (after expenses) are typically 1–2% lower than gross. What matters more than a single yield figure is the total return: yield plus capital growth. A 3% net yield on a property growing at 6%/year outperforms a 6% net yield on a property with flat capital values.
How is the 10-year total return calculated?
The 10-year return in this calculator adds two components: capital growth (the increase in property value at your chosen annual growth rate, compounded over 10 years) plus cumulative after-tax cashflow (your annual after-tax net income from rent, multiplied by 10). This is a simplified model — it assumes constant rent, expenses, and interest rates over the period. A full model would account for rent increases, refinancing, and depreciation deductions.
Can I claim depreciation on an investment property?
Yes — building depreciation (Division 43) and plant and equipment depreciation (Division 40) are significant tax deductions that are not captured in this calculator. For a new property, depreciation deductions of $5,000–$15,000/year in the early years are common. For established properties purchased after 9 May 2017, you can only claim plant and equipment depreciation on new assets you install yourself. A quantity surveyor prepares a depreciation schedule ($500–$800) that pays for itself many times over in tax savings. Add your estimated depreciation to the 'annual expenses' input to model the tax impact.