Interest is deductible
From 1 April 2025, mortgage interest on residential rental property is fully deductible again. The calculator treats 100% of your interest as deductible.
The projection
Value, Loan And Equity Year By Year
The shaded gap between the property value and the loan balance is your equity. Hover or tap the chart for each year’s figures.
Property value vs loan balance
Property valueLoan balance
See the year-by-year cash flow table
| Year | Rent | Running costs | Interest | Principal | Tax | Cash flow after tax | Property value | Loan balance | Equity |
|---|
Good to know
2026 Rules That Affect Your Numbers
Losses are ring-fenced
A rental loss generally can’t reduce tax on your salary. It is carried forward and used against future rental profit, which is how the calculator handles it.
Two-year bright-line
For residential property bought on or after 1 July 2024, a gain on sale within two years is generally taxable. The projection does not include tax on sale.
30% investor deposit
The Reserve Bank’s standard LVR for investors is 70%, so most lenders look for a 30% deposit. Check yours with our LVR calculator.
What is the difference between gross and net yield?
Gross yield is a year’s rent divided by the purchase price. Net yield takes off running costs such as rates, insurance, maintenance and property management first.
Neither includes mortgage costs, so they let you compare properties regardless of how they are financed.
What do positive and negative gearing mean?
A property is positively geared when the rent covers all its costs, including the mortgage, and leaves money over. It is negatively geared when you need to top it up from your own income each week.
Why is principal included in the cash flow?
On a principal and interest loan, part of each repayment reduces the loan. It is a real cost to your weekly cash flow, but it is not a tax-deductible expense and it builds your equity. Switch to interest only to see the difference.
What does the calculator leave out?
It does not include selling costs, tax on any gain when you sell, depreciation on chattels, insurance or rate changes beyond the growth rate you choose, or changes in interest rates. Actual results will differ.
Can I save or share my results?
Yes. Your numbers are kept in the page address as you type. Use “Copy link to these numbers” to share them, or bookmark the page to come back later.
Next step
Talk Through An Investment With Sarah
Bring your numbers to a free chat. Sarah can explain how lenders assess rental income, deposits and existing debt, and what lending options may be available.
This calculator is a guide only and is not a loan offer, tax advice or personalised financial advice. Projections are based on the figures you enter and assumed growth rates, which are not guaranteed. Results exclude selling costs, tax on sale, depreciation and changes in tax rules. Speak to an accountant about your tax position.