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Investment loan calculator.

Repayment plus a Year-1 cashflow position — gross yield, holding costs, tax benefit, after-tax outcome. A starting estimate, not a full investment model.

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Inputs
Result
Monthly loan repayment
$3,733.33
Gross annual rent
$35,360
Gross yield
5.05% p.a.
Net cashflow before tax
-$16,640
Estimated tax benefit
$7,488
After-tax cashflow
-$9,152

This is a Year-1 indicative cashflow. Depreciation, capital growth, and yearly rent increases are not included — adding a depreciation schedule (often $5k–$15k a year on a new build) usually improves the after-tax cashflow materially. Use this as a rough sanity check, not a final number. Have a chat to model a specific property properly.

What it doesn't show

Capital growth, depreciation, and land tax.

The calculator runs a Year-1 cashflow only. A real investment decision needs the full 10-year model with capital-growth assumptions, depreciation, land tax in the relevant state, and the eventual exit position.

  • Capital growth is the main game. Cashflow is rarely the reason people invest in residential property. A $5,000 a year cashflow loss is fine if the property appreciates 5% on a $700k loan, the growth dwarfs the loss. The investment property lending page covers how LVR and IO structure interact with that growth assumption.
  • Depreciation matters more on new builds. A new build with a quantity-surveyor schedule can generate $10k+ of annual depreciation, turning a cashflow-negative property into cashflow-positive after tax.
  • Land tax is the silent ongoing cost. Above the state threshold (currently around $1m in NSW, varies elsewhere) it ranges from 0.5% to 2.5% of land value each year, every year you hold.
  • Exit costs. Selling triggers CGT (50% discount after 12 months for individuals), plus selling agent fees (2-3% of price). Property is not a short-hold asset. If you're sourcing the next purchase, the buyer's agent fee schedule is worth budgeting against the same model.

Common questions

Investment loan interest is tax-deductible. Principal repayments are not. Investors who can claim higher tax benefits often prefer interest-only for the first 5-10 years, then convert to P&I once the deduction matters less or rates change. Owner-occupied loans usually go P&I from day one.
Depreciation requires a quantity-surveyor schedule that's specific to the property's age, build quality and fittings. New builds typically generate $5,000-$15,000 of annual depreciation. Older properties generate less. Adding it usually improves after-tax cashflow by $1,500-$5,000. We'll run a real number on a real property in person.
Depends on the market. Sydney and Melbourne capital-city investment properties usually run 3-4% gross. Brisbane and Perth often hit 4-5%. Regional and outer-suburban can hit 5-7%. A higher yield isn't automatically better — it usually comes with lower expected capital growth.
Only when the after-tax cashflow loss is small enough that the expected capital growth outweighs it. The math has to make sense without growth too — a property that's expensive to hold every year and might not appreciate is just a bad investment with a tax wrapper.
Investment properties incur state land tax above the relevant threshold. NSW and Victoria are the most expensive. Adding land tax to annual holding costs can push the cashflow position 10-20% worse. The calculator excludes it because it's state-specific and threshold-sensitive.

Continue reading

Want the full 10-year model?

We'll run growth scenarios, real depreciation from a QS schedule, and the after-tax position year by year. The brokers and the adviser work together on the same file.

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