How does a negative gearing calculator help you?
The Negative Gearing Calculator is designed to give residential property investors an estimate of the net income effect of owning an investment property.
How to use the calculator
The negative gearing calculator combines the cash operating revenue, rent, and the cash operating expenses, with the change in the amount of income tax paid to measure the net change in the investor's income due to the investment property.
To use our negative gearing calculator, there are a few key pieces of information you will need to insert into the calculator.
- Property price
- Deposit amount
- Loan term
- Interest rate
- Type of loan
- Salary details
- Weekly rental income
- Annual expenses
Does negative gearing reduce taxable income?
The key benefit of negative gearing is that any net rental loss you incur during the financial year may be offset against other income you earn, such as your salary. This in turn reduces your taxable income and how much tax you have to pay.