Investment Property Cashflow Calculator Australia 2026

How to Calculate Investment Property Cashflow

Cash flow is the difference between the rental income a property generates and the total cost of holding it. A property with positive cash flow puts money in your pocket each week. A negatively geared property costs you money, but may deliver tax benefits and long-term capital growth.

Cashflow Formula

For example, a $650,000 property with a $520,000 loan at 6.5% over 30 years has annual mortgage repayments of approximately $39,450. If the weekly rent is $550 ($28,600/year) and annual expenses total $7,500, the before-tax cash flow is $28,600 - $39,450 - $7,500 = -$18,350 per year (-$353/week). However, the tax deduction on this loss can significantly reduce the out-of-pocket cost.

What Counts as a Property Expense?

When calculating cash flow, include all ongoing costs of holding the property. The main expenses are:

• Mortgage repayments (principal and interest, or interest only)
• Council rates, typically $1,500 to $3,000 per year
• Landlord insurance, typically $1,200 to $2,000 per year
• Strata or body corporate levies, if applicable (units and townhouses)
• Property management fees, typically 7% to 10% of rent
• Maintenance and repairs, budget roughly 1% of property value per year
• Water rates, varies by council area

The Tax Benefit: How Negative Gearing Reduces Your Shortfall

In Australia, if your investment property expenses exceed the rental income, the loss can be offset against your other income (such as salary), reducing your total tax bill. This is known as negative gearing. The tax saving depends on your marginal tax rate. For instance, if your annual property loss is $10,000 and your marginal tax rate is 37%, you receive a tax benefit of $3,700, reducing the real out-of-pocket cost to $6,300 per year.

For a detailed explanation of how negative gearing works and whether it suits your investment strategy, read our guide on negative gearing explained.

Learn More

• Positive Cash Flow Property in Australia - how to find properties that pay for themselves.
• How to Calculate Rental Yield in Australia - a comprehensive step-by-step guide.
• Rental Yield Calculator - calculate gross and net yield for any property.