Calculate∑ What your result means
Negative gearing occurs when a rental property's expenses (loan interest, rates, agent fees, maintenance) exceed the rental income it generates, creating a loss that can be offset against your other taxable income.
Australia Negative Gearing & Investment Property Calculator
See your rental result and estimated tax benefit when your property expenses exceed rental income.
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Verified for 2026-27Methodology 2026-27.1 · reviewed 2026-08-08 · review by 2027-06-01
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Compare scenarios
Change annual rental income to see how after-tax cash position responds.
Understand your result
Clear context for the values above.
After-tax cash position
After-tax cash position is included so you can interpret this estimate and make a better-informed comparison.
Pre-tax rental result
Pre-tax rental result is included so you can interpret this estimate and make a better-informed comparison.
Estimated tax benefit
Estimated tax benefit is included so you can interpret this estimate and make a better-informed comparison.
Annual rental income
Annual rental income is included so you can interpret this estimate and make a better-informed comparison.
How to use this calculator
- 1Enter your current annual rental income, annual interest & property expenses, annual depreciation and capital-works deductions, your marginal tax rate.
- 2Review the headline after-tax cash position and the supporting figures beside it.
- 3Change one input at a time to see which assumption has the biggest effect.
- 4Confirm current Australian rates and thresholds with an official source before acting.
Explore this calculator
What your result means →The headline after-tax cash position is based on the inputs currently shown above.Key terms explained →Review the key terms and figures used to calculate this result.How to use this calculator →Enter your figures, review the live result, compare scenarios, then save or print your estimate.The calculation formula →The calculation follows the standard formula for this calculator. Results update whenever an input changes.Worked example →Using the current values produces -$2,930.Assumptions and limitations →Review the assumptions used to produce this estimate before relying on it.Costs or factors not included →Review any costs, fees or rules not automatically included before making a decision.Frequently asked questions →How accurate is this estimate? What should I check before relying on it? Can I save or share the result?
▦ How this calculator works
The calculator subtracts your annual expenses from rental income to find the pre-tax result. If that result is a loss, the tax benefit is estimated as the loss multiplied by your marginal tax rate plus the 2% Medicare levy, since the loss reduces your overall taxable income.
◇ Assumptions and what's not included
Depreciation deductions (which don't involve any cash outflow but do reduce taxable income), capital gains tax on eventual sale, land tax, and vacancy periods are not included in this simplified cash view.
▤ What to do next
Use this to sanity-check whether a negatively geared property is still costing you cash after the tax benefit, and speak with a tax professional about depreciation schedules, which often improve the result further.
Australia-specific contextFigures use AUD and current published rates and thresholds.
Reviewed for clarityUpdated 3 August 2026.
ImportantFor planning and educational use — not tax, legal or financial advice.
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Frequently asked questions
Does negative gearing mean I get all my losses back as a refund?+
No — the tax benefit only reduces the tax you'd otherwise pay on your other income; it never turns your investment loss into a net cash profit on its own.
Is depreciation included?+
Yes—enter the annual capital-works and eligible depreciation deduction from your quantity-surveyor or tax schedule in the dedicated field. It affects taxable result without being treated as a cash expense.
What if my rental income is higher than expenses?+
Then the property is positively geared, the pre-tax result is a profit, and it adds to your taxable income rather than reducing it — this calculator will show $0 tax benefit in that case.
Does the marginal rate include the Medicare levy?+
The tax benefit estimate adds 2% to your entered marginal rate automatically to approximate the Medicare levy saving.
Official references
Rules and thresholds used by this calculator are labelled for 2026–27 or formula-labelled period. Review the primary guidance before making a filing, borrowing, benefit or investment decision.
Last source review: 3 August 2026. Calculator results are estimates and may exclude circumstances described in the methodology.