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Negative gearing calculator

Your estimated results

Your investment property is positively geared as your rental income can cover your expenses. You won’t be able to make any deductions from your taxable income and you’ll be paying $ 1170.00 more in personal income tax per year.


$15,600.00 /year
$12,000.00 /year
$3,600.00 /year
$1,170.00 /year

The Variable Investor Home Loan will save you money on interest and fees to make it easy to buy an investment property.

discount variable p.a.+
comp rate p.a.*
Option to add an offset sub-account for 0.10%^
No monthly or ongoing fees
Unlimited redraws

What is negative gearing?

Negative gearing means that the cost of owning an investment property outweighs the rental income it generates. Although you are making a loss, these losses are tax deductible and result in tax savings overall.

As an example, let's assume that your rental property earns $20,000 in one year and the expenses of owning the property (loan repayments, body corporate fees, maintenance, etc.) are $25,000. You will have a loss of $5,000 which you can claim as a tax deduction.

The biggest benefit of a negatively-geared property is the ability to claim tax deductions and reduce your taxable income.

Additionally, a negatively geared property investment may appreciate in value over time. This capital gain in the value of the home can offset your other losses.

There is also a risk involved with negative gearing because you are losing money. You will always need to budget for an ongoing shortfall and prepare for the losses.

The benefits of negative gearing are:

  • You are able to claim losses on the asset such as borrowing costs, building depreciation, and property expenses on tax to reduce your taxable income overall
  • Capital growth can outweigh losses
borrower comparing refinancing options borrower comparing refinancing options

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.

Home loan FAQs

Building a granny-flat is usually cheaper than buying an investment property and can still offer tax deduction and negative gearing options.
Negative gearing occurs when the cost of owning a rental property outweighs the income it generates each year. This creates a taxable loss, which can normally be offset against other income including your wage or salary, to provide tax savings.
Negative gearing is when you buy an investment property, and the outgoings that you pay on the loan to buy the property are greater than the rent itself.
Negative gearing a property is possible if the owners' rental expenses exceed their rental income. These expenses could come from items like loan interest, maintenance costs, strata fees, insurance, as well as rates and taxes. People who negatively gear their properties expect the house value to appreciate.

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