Negative Gearing Calculator

Calculate rental property negative gearing tax benefit from income and expenses.
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Total ROI

26.6%

Annual Cash Flow

$1,800.00

Total Annual Return

$15,942.86

Annual Return Breakdown

Rental Income$24,000.00
Total Expenses- $22,200.00
Net Cash Flow$1,800.00
Equity Buildup (est.)+ $5,142.86
Appreciation (est.)+ $9,000.00
Total Annual Return$15,942.86
ROI on Cash Invested26.6%

Projected Returns

1-Year Total Return$15,942.86 (26.6% ROI)
5-Year Total Return$82,496.51 (137.5% ROI)
10-Year Total Return$172,603.49 (287.7% ROI)

Use the Negative Gearing Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our Negative Gearing Calculator helps Australian property investors estimate the tax benefit they could receive from a negatively geared rental property. By inputting your income and expenses, you can understand how your deductible losses can reduce your taxable income for the 2025-2026 financial year.

The calculator determines the net rental loss by subtracting total deductible expenses (interest, property management fees, repairs, etc.) from total rental income. This net loss is then multiplied by your marginal tax rate (based on 2025-2026 tax brackets) to calculate the potential tax refund or reduction in tax payable.

Remember, negative gearing strategies should always be part of a broader financial plan and not solely driven by tax benefits. Common mistakes include underestimating non-deductible expenses or overestimating rental income, leading to inaccurate projections. Always consult a financial advisor for personalised advice.

Example: Calculating Negative Gearing Benefit

  1. 1 Input your annual rental income, deductible expenses (e.g., loan interest, rates, repairs), and your marginal tax rate for the 2025-2026 financial year.
  2. 2 The calculator will subtract your total deductible expenses from your total rental income to determine the net rental loss. This loss is then multiplied by your marginal tax rate.
  3. 3 The result will be your estimated annual negative gearing tax benefit. For instance, a $10,000 net rental loss at a 32.5% marginal tax rate would yield a $3,250 tax benefit.
  4. 4 This benefit represents the reduction in your tax liability or potential refund due to your negatively geared property. It's crucial to consider this benefit alongside the property's potential capital growth and overall investment strategy.

Source: SEC · Last updated: April 2026

Frequently Asked Questions

What is negative gearing?
Negative gearing occurs when the costs of owning an investment property (mortgage interest, maintenance, depreciation, insurance) exceed the rental income. The resulting loss can be deducted against your other income, reducing your tax bill.
Is negative gearing the same as a rental property loss?
They are related but not identical. In the US, passive activity loss rules limit your ability to deduct rental losses against active income. You can deduct up to $25,000 in rental losses if your AGI is below $100,000, phased out completely at $150,000.
When does negative gearing become positive gearing?
A property becomes positively geared when rental income exceeds all ownership costs. This typically happens as rents increase over time while your fixed-rate mortgage payment stays the same, or when the mortgage is significantly paid down.

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