Capital Growth Calculator Australia 2026

Capital growth is calculated using compound growth formula: Future Value = Present Value × (1 + growth rate)^years. For example, a $750K property growing at 7% annually becomes $1.48M in 10 years. This calculator projects year-by-year values and estimates CGT on sale.

Historic long-term average is 6-8% annually nationwide. However, rates vary significantly by location and market cycle. Current 2026: Perth +17.8%, Adelaide +12.4%, Brisbane +14%, Sydney +6.4%, Melbourne +4.6%. Use conservative estimates (5-7%) for long-term planning.

Australian residents who hold an investment property for at least 12 months receive a 50% discount on the capital gain before tax is calculated. For example, a $300K gain becomes $150K taxable gain. Taxed at your marginal rate (e.g., 32.5% = $48,750 CGT vs $97,500 without discount).

Both are useful. Nominal values show actual dollar amounts you'll receive. Real values adjust for inflation to show purchasing power. A property worth $1.5M in 10 years might only have $1.2M purchasing power in today's dollars (at 2.5% inflation). Real values show true wealth creation.

Projections are estimates based on assumptions. Property markets are cyclical - growth rates fluctuate year-to-year. Use conservative rates, consider multiple scenarios, and focus on properties with strong fundamentals (infrastructure, population growth, employment, scarcity) rather than relying solely on historic averages.

Key drivers: (1) Supply vs demand (scarcity), (2) Population growth and migration, (3) Infrastructure investment (transport, schools, hospitals), (4) Employment growth and wages, (5) Interest rates and credit availability, (6) Economic conditions, (7) Location desirability. Properties with multiple growth drivers typically outperform.