Negative Gearing Calculator 2026–27
Work out the tax saved by negative gearing an investment property in 2026–27, the after-tax cost per week and whether it is negatively or positively geared.
Uses the 2026–27 resident rates and Medicare levy. Depreciation is a deduction with no cash cost; interest is only deductible on the part of the loan used for the property. Negative gearing reduces tax now, but the property still needs to grow in value to make money.
What it does
A property is negatively geared when its interest and other costs are higher than the rent. The loss is deducted from your salary and other income, so part of it comes back as a tax saving at your marginal rate. The calculator shows that saving and what the property really costs you each week.
How to use it
- Type your taxable income without the property.
- Type the rent, the loan interest, the other costs and the depreciation for the year.
- See the loss or profit, the tax saved and the after-tax cost per week.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How does negative gearing save tax?
The rental loss reduces your taxable income. With $120,000 of income and a loss of $15,000, including $5,000 of depreciation, you save $4,800 of tax, so the property costs you $5,200 a year: $100 a week.
Is negative gearing worth it?
Only if the capital growth beats the after-tax cost. In the example the property must gain more than $5,200 a year, before selling costs and capital gains tax.
What is positive gearing?
When the rent is more than the costs, the profit is taxed at your marginal rate: $9,000 of profit on $120,000 of income costs $2,880.
🏘️ Rental Property Calculator: Cash Flow, Cap Rate and Cash-on-Cash Return
📈 Australia Capital Gains Tax Calculator 2026–27
🇦🇺 Australia Mortgage Calculator
🇦🇺 Australian Pay Calculator