See exactly how much negative gearing saves you.

Plug in your rent, costs, depreciation and marginal tax rate. Get the year-one tax saving and after-tax cashflow per property — the real number after the ATO posts back its share of the loss.

Frequently asked questions

What is negative gearing?

Negative gearing happens when your property's expenses (interest, rates, depreciation, repairs, PM fees, insurance) exceed its rental income. The resulting loss can be deducted against your other taxable income (salary, business income, other rents) — reducing your tax bill. The cashflow shortfall is partially funded by that tax saving, with the strategy banking on long-term capital growth to outweigh the short-term loss.

How is the tax saving calculated?

Annual rental loss × your marginal tax rate (including 2% Medicare levy where applicable). A $10,000 loss at the 30% MTR (plus 2% Medicare) saves $3,200 in tax. The actual saving depends on your total taxable income — if your other income drops, the loss may push you into a lower tax bracket and the saving falls.

Does negative gearing apply in an SMSF or trust?

Differently. SMSFs can negative-gear but the loss is quarantined inside the fund (15% effective tax rate, capped at SMSF income). Discretionary trusts can't distribute losses to beneficiaries — losses are quarantined inside the trust until offset by future trust income. This calculator assumes individual ownership; multi-entity scenarios need their own modelling.

Should I rely on negative gearing?

It's a tax outcome, not a strategy. You're funding a real cashflow shortfall and hoping capital growth makes the total return positive. If interest rates rise or rents soften, the gap widens. Most investors aim to be neutrally geared within 5-10 years as principal pays down + rents grow — InvestorJoint's projections module models that progression per property.

What expenses count as deductible?

Interest on the investment loan (not principal), council rates, water rates, body corporate fees, insurance (building + landlord), property management fees, repairs and maintenance, depreciation (Div 40 plant + Div 43 capital works), borrowing costs (apportioned over 5 years), travel for inspections (limited rules apply). Renovations and improvements aren't immediately deductible — they form part of the cost base or get capitalised + depreciated.