Cash needed upfront
Year-1 cash flow, after tax
Loan repayment
Year-10 cash flow, after tax
Net position over time
Equity (property value minus loan) plus all cash you've put in or taken out, before selling costs and capital gains tax.
Yearly cash flow, after tax
Rent received less holding costs, the full loan repayment and tax, for each year. Below zero is money you contribute; above zero is money the property pays you. Hover a bar for the breakdown. For an established property, tax begins once the carried-forward losses are used up, which shows as a step down.
| After holding for |
10 years |
20 years |
30 years |
Assumptions used in this estimate
- Stamp duty uses each state or territory's published 2026–27 general (investor) schedule with no concessions and no foreign purchaser surcharge. Thresholds are indexed in some states, so confirm the exact figure with your conveyancer.
- Purchase costs of $3,000 for conveyancing and building & pest inspections.
- Deposits under 20% attract lenders mortgage insurance, estimated at 2% of the loan and added to the loan balance.
- Interest only: repayments are interest alone and the loan balance stays at the amount borrowed for the whole period. Principal and interest: a 30-year loan repaid in full. The rate is held constant either way; real rates move.
- Rent grows at the rate you set. Two weeks' vacancy per year. Holding costs (council rates, water, landlord insurance, property management, maintenance, strata where applicable) are 25% of gross rent and grow with it.
- Depreciation is claimed as capital works at 2.5% per year of the building component, taken as 40% of the purchase price, for 40 years. Plant and equipment depreciation is excluded, as is the reduction in CGT cost base that claiming capital works creates.
- Tax follows the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. For an established property bought after 12 May 2026, rental losses are carried forward and offset future rental profit. (Losses can still offset salary until 30 June 2027; the model treats them as carried forward from day one, which is the conservative reading.) For an eligible new build, losses reduce tax on your other income at your marginal rate. Rental profit is taxed at your marginal rate in both cases.
- Capital growth is compounded annually at the rate you set. Selling costs and capital gains tax are excluded. From 1 July 2027 the 50% CGT discount is replaced by cost-base indexation and a 30% minimum tax on gains for most established property; new builds can elect the 50% discount.
- Cash flow is rent received less holding costs, the loan repayment and tax.
- Annualised return is the internal rate of return on your upfront cash, yearly after-tax cash flows, and the equity at the end of the period.
This estimator is a simplified model for illustration only. It is general information only, prepared without regard to your personal circumstances, and does not constitute financial, tax, credit or legal advice. Actual outcomes depend on the specific property, your loan, tax position and market conditions, and may be materially different. Get advice from a licensed financial adviser, accountant and mortgage broker before making decisions.
