Free investor tool
Buy, hold and sell calculator
Model an investment property from the day you buy to the day you sell: the cash you put in, the rent and costs along the way, and what is left after selling costs, the loan and capital gains tax.
Updated · Free, no sign-up
| Year | Property value | Equity | Cash flow that year |
|---|---|---|---|
| 2 | $716,625 | $196,625 | −$9,698 |
| 4 | $790,079 | $270,079 | −$8,230 |
| 6 | $871,062 | $351,062 | −$6,673 |
| 8 | $960,346 | $440,346 | −$5,021 |
| 10 | $1,058,782 | $538,782 | −$3,268 |
How it works
What decides the return on a property
A property's return comes from three places: the growth in its value, the rent left after costs, and the debt you use. Buying and selling both cost money, mainly stamp duty on the way in and agent fees and capital gains tax on the way out, so the shorter the hold, the more of the gain those costs take.
This calculator adds up every dollar you put in (deposit, buying costs and any yearly shortfall) and every dollar you get back (yearly surplus and the sale proceeds), then works out the yearly return on your own cash. It uses an interest-only loan, a constant growth rate and the capital gains tax rules that apply from 1 July 2027. Real markets move unevenly, so test a low and a high growth rate.
The numbers are one part of the decision
We look at the figures alongside growth drivers, vacancy, supply and how a property fits your borrowing and portfolio plans, then choose the market that suits your strategy, wherever it is in Australia. See how we buy investment property.
FAQ
Common questions
How is the annual return calculated?
As an internal rate of return: the yearly rate at which the cash you put in grows to the cash you get back, taking the timing of each amount into account. It is on your own cash, not on the property's price, so borrowing raises it when the property grows and deepens the loss when it does not.
How is capital gains tax worked out here?
The gain is the sale price less selling costs, less the purchase price and buying costs. Growth up to 30 June 2027 keeps the 50% discount; growth after that is indexed for inflation and taxed at no less than 30%, under the reform passed in 2026. The estimate is for an individual resident and is added to the other income you enter.
Why does a short hold look so poor?
Stamp duty, legal fees and selling costs are fixed amounts that do not depend on how long you hold. Over two or three years they can absorb most of the growth; over ten years they are spread across a much larger gain.
Is this financial advice?
No. It is a general estimate to help you compare options. It does not consider your personal circumstances, and results depend on the figures you enter. Check them with your accountant, mortgage broker or financial adviser before you act.
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