Negative Gearing Calculator
Calculate your tax benefits and cash flow from negative gearing an investment property. See if the numbers stack up, then sanity-check next year's rules before you commit.
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Property Income
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A broker can structure your loan for maximum interest deductibility and find investor-friendly lenders that don't punish your serviceability.
What is negative gearing?
Negative gearing happens when your rental income is less than your property expenses. The loss reduces your taxable income, which means you pay less tax (or get a refund). It's a common investment strategy in Australia, but it only works if the property grows in value over time.
Key point: You're making a real cash loss every year. The tax benefit softens the blow, but you're still out of pocket. The bet is that capital growth will outweigh those losses when you eventually sell.
Next financial year note: this calculator uses current resident tax settings and today's broad negative gearing treatment. If you are buying for 2026-27, rerun the deal with a weaker tax benefit assumption as well, because future budget or policy changes can move the result.