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Investment property calculator
Know the numbers before you buy. See what an investment property could cost you to hold each month, how far the rent goes towards the loan interest, and how a 3 or 5 year hold looks under a growth assumption you choose. Change any figure and the results update straight away.
- Free to use
- No sign-up or email
- Works on your phone
- Every assumption editable
What you'll find out
Four things to know before you commit
The calculator turns a price, a loan and a rent into the figures investors usually ask about first.
Cash flow before tax
Rent in, loan interest and running costs out. You see the gap or surplus per week, per month and per year.
Gross and net rental yield
How the yearly rent compares with the purchase price, before and after running costs such as management fees and rates.
Break-even weekly rent
The weekly rent needed to cover interest and running costs, so you can compare it with what similar homes rent for.
3 and 5 year scenarios
Pick a growth assumption and see it next to the total holding cost over 3 and 5 years. There is also a building depreciation estimate for reference.
How it works
Three steps, about two minutes
Enter the property and loan
Purchase price, deposit and an assumed interest rate. The calculator works out the loan and the monthly interest on an interest-only basis.
Add rent and running costs
Weekly rent, property management fee, council rates, insurance and water, and body corporate if the home has one.
Read the results and test scenarios
Change the rent, rate or growth assumption to see how sensitive the numbers are. Print or save the page as a PDF to keep a copy.
The calculator
Enter your numbers
The figures below are an example so you can see how it works. Replace them with the property you are looking at.
Property & loanPrice, deposit and an assumed interest rate
Purchase price in AUD
$180,000 cash deposit, excludes buying costs
Assumed annual rate, interest-only loan
Rent & running costsWhat the property earns and what it costs to hold
$44,200 a year, before vacancy and expenses
% of rent, paid to the managing agent
Editable yearly estimate
If applicable (apartments, most townhouses)
Depreciation estimateOptional. Shown for reference, not added to cash flow
Building only, excludes land. The real figure comes from a quantity surveyor (QS) report.
The ATO lists 2.5% a year for residential buildings whose construction started after 15 September 1987. Eligibility is not automatic.
For reference only, not included in the cash flow result. A quantity surveyor's report and a registered tax agent confirm what can be claimed.
Holding scenarios: 3 and 5 yearsExample growth assumptions you can change. Not a forecast
After 3 years
Total change across all 3 years, not per year. Use a minus sign to test a fall.
Difference after holding costs$109,398
Assumed growth plus 3 years of pre-tax cash flow. Not a net profit.
After 5 years
Total change across all 5 years, not per year. Use a minus sign to test a fall.
Difference after holding costs$182,330
Assumed growth plus 5 years of pre-tax cash flow. Not a net profit.
Full breakdown
Property & loan
- Purchase price
- $900,000
- Deposit amount
- $180,000
- Loan amount
- $720,000
- Annual loan interest
- $44,640
- Monthly loan interest
- $3,720
Rent & running costs
- Gross rent per year
- $44,200
- Management fee per year
- $3,094
- Rates, insurance & water
- $5,000
- Body corporate
- $0
- Total operating costs
- $8,094
Results
- Net operating income
- $36,106
- Net rental yield
- 4.0%
- Break-even weekly rent
- $1,026
- Cash flow before tax per month
- −$711
- Cash flow before tax per year
- −$8,534
Important: this is an indicative interest-only model. It excludes principal repayments, loan fees, buying costs such as stamp duty and legal fees, land tax, vacancy, capital gains tax, rent increases and changes in interest rates. Default figures are examples only. They are not a quote, a forecast or the figures of any project listed above, and the default interest rate is an assumption, not a lender's rate.
The holding scenarios use growth assumptions you can change. The defaults (15% over 3 years, 25% over 5 years) are examples only, not a forecast by Nextstar Realty; prices can rise, stay flat or fall. The difference figure is assumed growth plus pre-tax cash flow only. It does not deduct buying or selling costs, capital gains tax or principal repayments, so it is not a profit figure.
The depreciation figure is an estimate only. Whether it can be claimed, how much, and your actual cash outcome need confirmation from a registered tax agent and a quantity surveyor. Nextstar Realty introduces and markets new-home projects and has a commercial interest when you buy through Nextstar. We are not a financial or credit adviser, and this calculator is not financial, credit or tax advice. Before you decide, speak with a licensed mortgage broker or credit provider and your tax agent.
How to read your results
What each number means
Plain-English definitions of every result, with the formula the calculator uses.
- Cash flow before tax
- Rent − running costs − loan interest
- Negative means the rent does not cover interest and running costs, and the difference would come from your other income or savings. It is shown before any tax effect.
- Gross rental yield
- Yearly rent ÷ purchase price
- A quick way to compare properties at different prices. It ignores all costs, so it always looks higher than the net yield.
- Net rental yield
- (Yearly rent − running costs) ÷ purchase price
- Closer to what the property earns, but still before loan interest, so it does not depend on how you finance the purchase.
- Cash-on-cash return
- Yearly cash flow before tax ÷ deposit
- How the yearly cash flow compares with the cash you put in. Buying costs such as stamp duty are not included in the deposit here.
- Break-even weekly rent
- (Rates, insurance, water + body corporate + interest) ÷ (52 × (1 − management fee %))
- The rent at which cash flow before tax reaches zero, assuming the other figures stay the same.
- Building depreciation estimate
- Eligible construction cost × depreciation rate
- Shown for reference only and not added to cash flow. Whether it can be claimed, and how much, needs a quantity surveyor's report and a registered tax agent.
- Holding scenario difference
- Assumed growth + (yearly cash flow × 3 or 5)
- Puts an assumed price change next to the total holding cost. It is not a profit figure: buying and selling costs, capital gains tax and principal repayments are not deducted.
Good to know
What the calculator does not include
It is an indicative, interest-only model built to start a conversation, not to replace one. These items are left out, so treat the result as a first look and check it with your broker and accountant.
- Principal repayments
- Loan fees and charges
- Stamp duty and legal costs
- Land tax
- Vacancy periods
- Selling costs
- Capital gains tax
- Changes in rent or interest rates
Questions
Frequently asked questions
Is the calculator free?
Yes, it is free. You do not need to sign up or leave any personal details, and the calculations run in your browser.
Where do the default figures come from?
They are an example so the calculator shows results on first load: a $900,000 property, 20% deposit, 6.2% assumed interest rate and $850 a week rent. They are not a quote, a forecast or the figures of any project Nextstar Realty markets. Replace them with your own.
Does the growth figure mean prices will rise by that much?
No. The 15% (3 years) and 25% (5 years) defaults are examples you can change, not a forecast by Nextstar Realty. Property prices can rise, stay flat or fall, and you can enter a negative figure to test a fall.
Is this financial, credit or tax advice?
No. It is a general calculator. Nextstar Realty introduces and markets new-home projects and has a commercial interest when you buy through Nextstar. We are not a financial or credit adviser. For a loan, speak with a licensed mortgage broker or credit provider; for tax and depreciation, speak with a registered tax agent and a quantity surveyor.
Can I use it for an established home?
The cash flow and yield maths work for any property. The depreciation estimate is set up for a newly built home; for an older property the remaining capital works period depends on when it was built, so ask a quantity surveyor.
Can Nextstar help me with real figures for a project?
We can share the price and project details we hold for the new homes we market, so you can enter real figures here and take them to your broker. Book a consultation to start.
Want real figures for a specific project?
We can share the price and project details for the new homes we market, so you can run the numbers properly and take them to your broker.
