Negative Gearing Calculator
Calculate rental property negative gearing tax benefit from income and expenses.
By Konstantin Iakovlev · Updated April 2026 · Source: SEC
Total ROI
26.6%
Annual Cash Flow
$1,800.00
Total Annual Return
$15,942.86
Annual Return Breakdown
| Rental Income | $24,000.00 |
| Total Expenses | - $22,200.00 |
| Net Cash Flow | $1,800.00 |
| Equity Buildup (est.) | + $5,142.86 |
| Appreciation (est.) | + $9,000.00 |
| Total Annual Return | $15,942.86 |
| ROI on Cash Invested | 26.6% |
Projected Returns
| 1-Year Total Return | $15,942.86 (26.6% ROI) |
| 5-Year Total Return | $82,496.51 (137.5% ROI) |
| 10-Year Total Return | $172,603.49 (287.7% ROI) |
Use the Negative Gearing Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Australian property investors holding a negatively geared rental can use this tool to estimate the tax benefit that arrangement produces. Feed in your income and expense figures and you can see how the deductible loss on the property pulls down your taxable income for the 2025-2026 financial year.
The first step works out your net rental loss by subtracting total deductible expenses, such as interest, property management fees, and repairs, from total rental income. That loss is then multiplied by your marginal tax rate under the 2025-2026 tax brackets, which yields the potential tax refund or the reduction in tax you owe.
Treat negative gearing as one element of a wider financial plan rather than a goal pursued for the tax break alone. Projections go astray most often when non-deductible expenses are understated or rental income is overstated, so be conservative on both. For advice tailored to your own circumstances, speak with a financial advisor.
Example: Calculating Negative Gearing Benefit
- 1 Input your annual rental income, deductible expenses (e.g., loan interest, rates, repairs), and your marginal tax rate for the 2025-2026 financial year.
- 2 The calculator will subtract your total deductible expenses from your total rental income to determine the net rental loss. This loss is then multiplied by your marginal tax rate.
- 3 The result will be your estimated annual negative gearing tax benefit. For instance, a $10,000 net rental loss at a 32.5% marginal tax rate would yield a $3,250 tax benefit.
- 4 This benefit represents the reduction in your tax liability or potential refund due to your negatively geared property. It's crucial to consider this benefit alongside the property's potential capital growth and overall investment strategy.
Source: SEC · Last updated: April 2026
Frequently Asked Questions
What is negative gearing?
Is negative gearing the same as a rental property loss?
When does negative gearing become positive gearing?
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