Investment Property Cash Flow Calculator
Enter your rental income and property costs to see the weekly cash position before tax. This is an estimate only and does not constitute credit advice or an offer of credit.
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A calculator applies one formula. Lenders apply their own, and they disagree with each other. Send us what you worked out and we will tell you how it looks against real lender policy.
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How this is calculated
The calculator works out your weekly cash position by subtracting all holding costs from your rental income. First, it adjusts the rent for vacancy: effective weekly rent = weekly rent x (1 - vacancy rate / 100). This reflects the reality that the property won't be tenanted 52 weeks a year.
On the cost side, it adds up the weekly interest cost (loan amount x annual rate / 52), strata, council rates, water rates, insurance, and the property management fee (effective rent x management fee percentage). The weekly cash flow is the effective rent minus total costs. Multiply by 52 for the annual figure.
This is a pre-tax calculation. It doesn't include negative gearing (where the loss reduces your taxable income), depreciation deductions, land tax, or capital growth. The actual after-tax outcome can be very different — a property that's negatively geared pre-tax can be close to neutral after tax for a high-income earner claiming depreciation.
What this doesn't account for
- Tax. Negative gearing, depreciation (building and plant), and capital gains tax are not modelled. These can significantly change the after-tax return. Talk to your accountant.
- Capital growth. The property's value may increase over time, which is often the primary return for investors. This calculator shows cash flow only, not total return.
- Maintenance and repairs. Ongoing maintenance, periodic repairs and appliance replacement aren't included. Budget 1–2% of property value per year.
- Land tax. In NSW, investment properties are subject to land tax (threshold-dependent). This can be a significant annual cost not modelled here.
- Rent increases. The calculator uses a fixed weekly rent. In practice, rent increases over time, which improves cash flow — but so do costs.
- Interest-only periods. If the loan is interest-only, the weekly interest cost is the same as modelled. If it's principal-and-interest, the repayment is higher but includes principal reduction — which is not a cost in the same sense.
Common questions
A property is negatively geared when the holding costs (interest, rates, management, maintenance) exceed the rental income. The loss reduces your taxable income, which can provide a tax benefit — particularly for higher-income earners. The strategy relies on capital growth to outweigh the ongoing losses. Positively geared means the property generates more income than it costs; neutral means they roughly balance.
It depends on your goals and tax situation. Positive gearing gives you cash in hand now but may have a larger tax bill. Negative gearing reduces tax but requires you to fund the shortfall from other income. Many investors start negatively geared and aim for the property to become neutral or positive over time as rent rises and the loan reduces. Your accountant is the best person to advise on the tax implications for your situation.
A common assumption is 5% (roughly 2.5 weeks vacant per year). In high-demand areas with low vacancy, 2–3% may be realistic. In areas with oversupply, 8–10% may be more appropriate. Look at vacancy rate data for the specific suburb you're considering — it varies significantly by location and property type.
No. Depreciation (the decline in value of the building structure and plant and equipment) can provide significant tax deductions that improve the after-tax cash flow — even for relatively new properties. A quantity surveyor can prepare a depreciation schedule. This calculator shows pre-tax cash flow only, so the after-tax position will typically be better than what's shown here.
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