Negative Gearing Calculator
Estimate the annual holding cost and tax position of an investment property in Australia. Choose your rough income, rent and expenses to see the negative gearing position.
How we estimate this
Negative gearing occurs when an investment property’s expenses (interest, rates, management, maintenance, depreciation) exceed its rental income. The loss can be offset against your other taxable income, reducing your tax.
Pricing reviewed: October 2026.
Understanding negative gearings in Australia
Negative gearing occurs when an investment property’s expenses (interest, rates, management, maintenance, depreciation) exceed its rental income. The loss can be offset against your other taxable income, reducing your tax.
The tax benefit depends on your marginal rate, higher earners get a larger deduction. Depreciation is a powerful non-cash deduction that increases the benefit without costing you cash. This tool estimates the tax saving, not your total return.
Frequently asked questions
How does negative gearing work in Australia?
When a rental property costs more to hold than it earns in rent, the loss can be deducted against your other income, reducing your tax. The benefit is larger at higher marginal tax rates.
Is negative gearing a good idea?
It reduces tax but means you’re funding a loss each year, betting on capital growth to make it worthwhile. Whether it suits you depends on your income, cash flow and goals, seek advice.
What is depreciation in negative gearing?
Depreciation lets you deduct the declining value of the building and fittings, a non-cash deduction that increases your tax benefit without costing you anything out of pocket.
Are you a property or finance business?
Everyone on this page is working out what negative gearing costs because they are ready to hire. Put your business right beneath the calculator, in your state, so you are who they find. From $600/mo.