Negative Gearing Calculator
Calculate your tax benefits and cash flow from negative gearing an investment property. See if the numbers stack up.
Your Income
Property Income
Total rent received per year (before expenses)
Property Expenses
Annual interest paid on the investment loan (not principal)
Enter 0 if not applicable (e.g., standalone house)
Typical: 6-8% of annual rent
Average annual spend on upkeep
From quantity surveyor report (typically $5k-$10k/yr for new properties)
Buying an investment property?
A broker can structure your loan for maximum interest deductibility and find investor-friendly lenders that don't punish your serviceability.
Find Your Best Rate →
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.