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Estimate weekly and annual rental cash flow, with the income tax effect of eligible losses.
This property gives $37.23 a week before tax and $60.68 after estimated 2026/27 income tax.
Example: illustrative $100,000 salary on an interest-only loan.
Rates as of
The calculator multiplies weekly rent by 52, deducts the running costs, then deducts mortgage payments on the price less the deposit. Interest-only payments cover interest; principal-and-interest payments also reduce the balance over your term. What is left is the annual cash before income tax; dividing by 52 gives an average week, not a payment schedule.
The mortgage rate starts at the checked RBA cash rate of 4.60%, but that is a policy benchmark, not a lender quote, so replace it with your loan’s rate. Strata, council rates and land tax are annual amounts; the management fee is a percentage of the annual rent.
For tax, eligible depreciation reduces taxable rental profit, although it is not money paid out that year. Salary means taxable employment income after employment deductions. The calculator works out income tax on salary alone and again with the rental profit or loss; the difference is the income tax attributed to this property.
For principal and interest, monthly payment = P × r ÷ [1 − (1 + r)−n], where P is the loan, r is the annual rate divided by 12, and n is the term in years times 12. At zero interest, payment is P ÷ n. The first 12 monthly payments reduce cash; only the interest charged on each month’s opening balance is deducted when estimating taxable profit.
Cap rate divides operating income before borrowing and depreciation by the purchase price. Cash-on-cash return divides annual cash before tax by the deposit, so it also reflects financing.
Take a $600,000 property, a $120,000 deposit, interest-only borrowing at 4.60% and $600 weekly rent. Enter $2,000 strata, $1,800 council rates, $1,200 land tax, a 7% management fee, $6,000 depreciation and $100,000 taxable salary. Annual rent is $31,200. Management is $2,184, taking operating costs to $7,184. Operating income is $24,016 and interest on the $480,000 loan is $22,080.
The whole loss falls in the 30% income tax band, giving a $1,219.20 saving. The average weekly cash flow is $37.23 before tax and $60.68 after the income tax estimate.
Principal-and-interest results cover the first year of a fully amortising loan with monthly payments and a constant nominal annual rate. Monthly compounding is a planning convention; lender daily-interest methods, fees, offsets and payment timing can differ.
The model uses 52 paid rental weeks and the listed expenses only. It excludes vacancy, insurance, repairs, acquisition taxes, legal fees, loan fees and sale costs, so it is not a complete property budget. Depreciation is entered as an established annual deduction; the calculator does not value assets or prepare a deduction schedule.
The after-tax result uses 2026/27 income tax bands for one property owned by an individual Australian resident. Medicare levy, Medicare levy surcharge, offsets, student loan repayments, benefits, other income, previous losses and ownership splits are excluded, so the result may differ substantially at lower incomes. A loss cannot save more income tax than the tax charged on the salary entered.
The ATO resident table and the Income Tax Rates Act supply the income tax bands. The ATO rental guide distinguishes income-producing expenses from private or capital costs, and interest from principal repayments. The calculator assumes your entered amounts meet the relevant deduction rules. The RBA decision supplies only the initial rate shown in the form. No market rent, vacancy forecast or lender offer is imported.
Ask an accountant or tax adviser about a mixed-purpose loan, capital strata levies, jointly owned property, non-resident status, company or trust ownership, depreciation eligibility or losses carried from earlier years. Check your loan statement and budget separately before relying on a positive cash flow.
Multiply weekly rent by 52, subtract the entered annual running costs and mortgage payments, then subtract the income tax attributable to the property. A deductible loss can reduce that tax. Depreciation changes the taxable result but is not another cash payment. It supports interest-only borrowing, monthly principal-and-interest repayments over your entered term, or a purchase without borrowing.
It is a rough comparison of monthly rent with purchase price, not an Australian tax rule or a guarantee of investment performance. This calculator does not apply that shortcut. It uses your actual rent, specified expenses, borrowing rate and salary to estimate cash flow.
Yield alone cannot answer that. The amount borrowed, interest rate and operating costs can turn the same yield into positive or negative cash flow. Enter the property's figures and check whether the before-tax result is above zero; the estimate still excludes costs outside the listed fields.
An eligible depreciation deduction reduces taxable rental profit without being a cash payment in that year. It can therefore improve the estimated after-tax result. Enter a supported annual deduction, not an asset's purchase price. The calculator does not prepare a depreciation schedule or establish eligibility.
Turn weekly rent into gross and net yield after running costs, vacancy and stamp duty.
Separate the tax deduction from the cash cost of a rental loss.
Estimate the gain, the current-discount tax and the tax under the July 2027 indexation rules.
