Investment Property Cash Flow Calculator 2026
Calculate monthly and annual cash flow for rental properties
Free calculator with negative gearing tax benefits and after-tax cash flow projections. No email required. Instant results.
Updated for the enacted 2026 NG / CGT reforms
Cash flow now reflects the post-12 May 2026 NG quarantining rules. Established post-cutoff properties show pre-tax cash flow only (no salary tax benefit applied). The reforms were enacted in June 2026 and commence 1 July 2027. The 7:30pm AEST 12 May 2026 acquisition cut-off governs negative gearing; the CGT transition applies to every qualifying asset through a deemed sale at market value on 30 June 2027, regardless of purchase date. Outputs are estimates only. Always consult a registered tax agent. Read the full reform guide →
Property & Loan Details
LVR: 80.0%
Current investor rates: ~7.25%
Rental Income
Annual: $28,600
Typical: 2 weeks
Annual Expenses
Tax Information
From depreciation schedule (Division 40 & 43)
Budget 2026 Reform
When Did You Buy? (2026 reforms)
Purchase date determines negative gearing. Established dwellings contracted before 7:30pm 12 May 2026 keep full negative gearing; later ones have losses quarantined from 1 July 2027. It does not determine CGT: every individually held asset is deemed sold at market value on 30 June 2027, the gain to that date keeps the 50% discount, and later growth is taxed on the CPI-indexed gain with a 30% minimum. Models the enacted Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Administrative detail (ATO valuation guidance, the apportioning-method instrument, the new-dwelling definition) is still being finalised.
Date you signed (or will sign) the purchase contract. Pre-12 May 2026 = negative gearing grandfathered.
New builds keep full negative gearing and the 50% CGT discount on later growth (definition pending).
Note: This calculator provides estimates for investment properties. Actual cash flow and tax outcomes depend on individual circumstances. The Budget 2026 reform mechanics modelled were legislated in June 2026 (negative-gearing changes commence 1 July 2027; pre-12 May 2026 holdings are grandfathered). Consult with a qualified accountant or tax advisor.
Enter property details to calculate cash flow.
How the Calculator Works
Enter Property Details
Provide property price, loan details, rental income, and all annual expenses.
Calculate Cash Flow
We calculate pre-tax and after-tax cash flow including negative gearing tax benefits.
Analyze Returns
See monthly/annual cash flow, tax deductions, rental yields, and investment insights.
Comprehensive Cash Flow Analysis (2026)
- Pre-Tax & After-Tax Cash Flow: See actual monthly contribution/income after tax benefits
- Negative Gearing Tax Benefits: Calculates tax deductions (interest, expenses, depreciation) and refund amount
- P&I vs Interest-Only: Compare both loan types to see impact on cash flow
- Vacancy Allowance: Accounts for typical 2-week vacancy per year
- Rental Yields: Shows gross and net rental yield alongside cash flow
- Investment Insights: Identifies positive/negative gearing and provides strategy recommendations
Calculator FAQs
What is cash flow in property investment?▼
Cash flow is the net income or expense from owning a rental property. It equals rental income minus all costs (loan repayments, rates, insurance, management, maintenance). Positive cash flow means the property generates income. Negative cash flow means you contribute money each month.
What is negative gearing?▼
Negative gearing occurs when property expenses (including loan interest) exceed rental income, creating a tax loss. This loss reduces your taxable income, providing tax refund benefits. In Australia, you can claim interest, rates, insurance, management fees, maintenance, and depreciation as tax deductions.
Is negative cash flow bad?▼
Not necessarily. Many successful investors accept negative cash flow (after tax) in exchange for strong capital growth. The key is ensuring the property has solid growth fundamentals (infrastructure, population growth, employment) and that you can afford the ongoing contribution.
What expenses can I claim as tax deductions?▼
Deductible expenses include: loan interest (not principal), council rates, water rates, strata fees, landlord insurance, property management fees, maintenance and repairs, depreciation (building and plant/equipment), land tax, pest control, gardening, and advertising for tenants. Capital improvements are not immediately deductible.
Should I choose P&I or interest-only loans?▼
Interest-only loans maximize tax deductions (100% interest) and cash flow but don't reduce the principal. P&I loans build equity faster but have higher repayments and lower tax deductions. Many investors use interest-only for the first 5-10 years to maximize deductions, then switch to P&I.
How do I improve cash flow?▼
Strategies to improve cash flow: (1) Increase rent to market rates, (2) Reduce vacancy (good property management, tenant retention), (3) Minimize expenses (negotiate insurance, self-manage if viable), (4) Add value through renovations that justify higher rent, (5) Refinance to lower interest rate, (6) Claim all eligible tax deductions including depreciation.
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Next Steps After Calculating Cash Flow
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Understand negative gearing with 2026 tax insights, real property examples, and who benefits most.