SnapCalc

Negative Gearing Calculator

Calculate your annual tax saving from a negatively geared investment property in Australia.

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Frequently Asked Questions

What is negative gearing?

Negative gearing occurs when the costs of owning an investment property (interest, rates, insurance, management fees) exceed the rental income it earns. The resulting loss can be offset against your other income, reducing your tax bill.

Is negative gearing worth it?

Negative gearing only makes financial sense if the capital growth of the property outweighs the ongoing cash shortfall. It is not a goal in itself — it is a tax concession on a loss.

What is the 50% CGT discount?

If you hold your investment property for more than 12 months, you only pay capital gains tax on 50% of the profit when you sell.