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Links Property Finance · Free calculator from a Sydney mortgage broker: Negative Gearing Calculator

Enter the loan, rate, rent, costs, depreciation and your income. The calculator shows the tax saving and the weekly cost, both for properties that keep negative gearing and for established homes bought after Budget night.

Reviewed by Charles Touma Updated 18 October 2026

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What does a negatively geared property cost you each week?

Negative gearing means the property’s interest and costs exceed the rent, and the loss reduces tax on your other income. New builds and properties held before Budget night keep the current treatment. This calculator shows the weekly cost under both.

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From 1 July 2027, losses on established homes bought after 7:30pm AEST on 12 May 2026 can only offset residential income and gains, with the rest carried forward.

Part of the investment property loans guide.

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What would the property cost you?

Weekly cost, before and after

Negative gearing: the weekly cost before and after the change

Interest-only loan. Tax uses 2026-27 resident rates plus the Medicare levy. Depreciation reduces tax but is not cash out of your pocket.

$600,000
6.00%
$650
$8,000
$4,000
$120,000
  • Cash result each year, before tax-$10,200
  • Tax loss including depreciation-$14,200
  • Tax saved against your salary$4,544
  • Weekly cost: held before Budget night, or a new build$109/wk
  • Weekly cost: established, bought after 12 May 2026, from 1 July 2027$196/wk
  • Loss carried forward each year under the new rules$14,200

Estimates only. Quarantined losses are not lost: they reduce future residential rent or a residential capital gain. Not tax or financial advice; your tax agent works out the real figures.

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How does the calculator work it out?

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  • Cash result.Rent for the year less interest on an interest-only loan and the yearly costs.
  • Tax loss.The cash result less depreciation, which is a tax deduction but not money out of your pocket.
  • Tax saving.The tax on your income without the property, less the tax with the loss, at 2026-27 resident rates plus the 2% Medicare levy.
  • Two weekly costs.With the saving, for properties that keep negative gearing; without it, for established homes bought after Budget night from 1 July 2027.

What does a typical example show?

The starting figures: a $600,000 interest-only loan at 6%, rent of $650 a week, $8,000 of costs, $4,000 of depreciation and a $120,000 income.

Who keeps negative gearing after 1 July 2027?

Owners of properties held at 7:30pm AEST on 12 May 2026, including contracts signed but not settled, keep it until they sell. New builds that add to housing supply keep it for any buyer who is the first purchaser.

Commercial property and shares are not affected. Established homes bought after Budget night can be negatively geared until 30 June 2027, then their losses are quarantined. The negative gearing changes article explains the rules in full.

How do lenders see a negatively geared property?

Lenders count most of the rent and test the loan at their buffer rate. Many add back part of the tax benefit of negative gearing when working out your borrowing power.

For established homes bought after Budget night, that benefit ends on 1 July 2027, so the figure a lender can count may fall. The guide to negative gearing covers how lenders treat geared property, and the rental yield calculator shows the yield before the loan.

Common questions about negative gearing calculator

How do you calculate negative gearing?

Add up the rent for the year, subtract interest, costs and depreciation, and if the result is a loss, it reduces your taxable income. The tax saved is the difference in tax with and without that loss.

How much tax do you save with negative gearing?

It depends on the loss and your tax rate. On a $14,200 tax loss and a $120,000 income, the saving is about $4,544 a year at 2026-27 rates.

Can I still negatively gear in 2027?

Yes for properties held before 7:30pm AEST on 12 May 2026 and for new builds. Established homes bought after that can be negatively geared only until 30 June 2027.

Is depreciation included?

Yes. Depreciation increases the tax loss and the tax saving, but it is not a cash cost, so it is left out of the cash result.

Does the calculator include capital gains tax?

No. It shows the yearly holding cost. The capital gains rules also change from 1 July 2027; see the capital gains tax changes.

Can I use it for a couple or joint owners?

Yes. Rent, costs and the loss are split by ownership share, so run it once for each owner with their share of the figures at their own tax rate, then add the two results.

Does it work for more than one property?

Run it once for each property and add the results. Under the rules from 1 July 2027, losses on an established home bought after 12 May 2026 can still offset rent and gains from your other residential properties.

Read what negative gearing is and the changes from 1 July 2027.

Check the estimate with a broker

Charles can show how lenders will count the rent and the tax effect, and whether the loan works without the salary tax saving.

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Charles Touma, mortgage broker at Links Property Finance
Reviewed by Charles Touma Director & Mortgage Broker · MFAA member · Credit Representative 579003 under ACL 389328 About Charles · Investment loans · MFAA register · ASIC register · Complaints processEvery page is reviewed by Charles before it is published and checked against current lender policy and the official scheme pages linked where figures appear.

General information only, not tax, financial or credit advice. Figures are illustrations at 2026-27 resident tax rates and are not a tax calculation for your situation.