Property Investment ROI Calculator (10-year)

What is Property Investment ROI?

A 10-year projection of your investment property's total return including capital growth, rental income, loan repayments, ownership expenses, tax benefits from negative gearing, and equity built. Shows annualised ROI on the cash invested (deposit + costs).

How this calculator works

Enter the purchase price, deposit, stamp duty, other buying costs, loan rate and term, weekly rent, vacancy weeks, and annual expenses. Choose capital growth and rent growth assumptions, plus your marginal tax rate. The calculator amortises the loan year-by-year, grows the property value and rent, computes after-tax cashflow including ~1.5% notional depreciation, and projects equity built. Final ROI uses cumulative cashflow + equity divided by cash invested.

Australian Property Long-Run Growth

Per CoreLogic 1980–2024 data, capital city long-run growth: Sydney ~6.4%/yr, Melbourne ~5.8%, Brisbane ~5.5%, Perth ~5.0%, Adelaide ~5.2%, Hobart ~5.5%, Darwin ~3.0%, Canberra ~5.5%. Plus rental yields typically 3–5% gross. But there are decade-long divergences — Perth went sideways for 8 years post-2014 mining bust; Sydney boomed 2012–2017; Brisbane outperformed 2020–2024. Past growth doesn't guarantee future returns.

Cashflow vs Capital Growth

Most Australian investment properties are 'negatively geared' in the early years — rent doesn't cover interest + expenses, generating a tax loss. The strategy assumes long-term capital growth more than offsets the cashflow loss. High-yield 'positive cashflow' properties exist (regional towns, mining centres) but typically have lower or more volatile capital growth. Choose based on whether your goal is income now (cashflow) or wealth accumulation (growth).

The Negative Gearing Tax Benefit

If your annual rent income < interest + expenses + depreciation, you have a tax loss. That loss reduces your other taxable income (salary, business income), generating a refund. At 37% marginal rate, every $1,000 of property loss returns $370. Combined with 50% CGT discount on sale, this creates a powerful long-term wealth strategy — but only if capital growth materialises. The calculator estimates ~1.5% of property value as depreciation; get a QS schedule for actual numbers.

Ongoing Costs People Forget

Council rates ($1,500–$3,000/yr), water rates ($800–$1,500), strata levies ($2,000–$8,000 for apartments), landlord insurance ($400–$800), property management fees (7–9% of rent + leasing fees), repairs and maintenance (~1% of property value/yr), special strata levies (unpredictable), and land tax (varies by state, applies above thresholds). Total ongoing costs typically 1.5–3% of property value/year.

What This Calculator Excludes

Selling costs (~3% agent commission + ~$2,000 legal), Capital Gains Tax on sale (50% discount after 12 months, balance taxed at marginal rate), special strata levies, vacancy beyond your assumption, and major capital expenditures (roof replacement, hot water system, oven). Always pad your projection by 5–10% on the negative side for realism. The 'annualised ROI' assumes the property is HELD at year 10 — selling triggers CGT that significantly reduces the net return.

Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).

All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.

Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.