Free investor tool
Equity recycling calculator
See how capital growth and refinancing could release equity for your next investment property, and roughly when each purchase might become possible.
Updated · Free, no sign-up
| Year | Properties | Portfolio value | Debt | Equity | Usable equity left |
|---|---|---|---|---|---|
| 1 | 2 | $1,470,000 | $1,166,625 | $303,375 | $9,375 |
| 2 | 2 | $1,543,500 | $1,166,625 | $376,875 | $68,175 |
| 3 | 2 | $1,620,675 | $1,166,625 | $454,050 | $129,915 |
| 4 | 2 | $1,701,709 | $1,166,625 | $535,084 | $194,742 |
| 5 | 3 | $2,616,377 | $2,037,687 | $578,690 | $55,415 |
| 6 | 3 | $2,747,196 | $2,037,687 | $709,509 | $160,070 |
| 7 | 4 | $3,799,171 | $2,998,033 | $801,138 | $41,304 |
| 8 | 4 | $3,989,130 | $2,998,033 | $991,096 | $193,271 |
| 9 | 5 | $5,196,950 | $4,056,815 | $1,140,135 | $100,745 |
| 10 | 5 | $5,456,797 | $4,056,815 | $1,399,982 | $308,623 |
| 11 | 5 | $5,729,637 | $4,056,815 | $1,672,822 | $526,895 |
| 12 | 5 | $6,016,119 | $4,056,815 | $1,959,304 | $756,080 |
| 13 | 5 | $6,316,925 | $4,056,815 | $2,260,110 | $996,725 |
| 14 | 5 | $6,632,771 | $4,056,815 | $2,575,956 | $1,249,402 |
| 15 | 5 | $6,964,409 | $4,056,815 | $2,907,595 | $1,514,713 |
How it works
How equity recycling works
As properties grow in value, the gap between what they are worth and what you owe widens. Refinancing up to a set LVR releases part of that gap as usable equity, which can fund the deposit and costs on the next purchase. Repeating this is how many investors grow from one property to several.
This model checks each year whether usable equity across the portfolio covers the deposit and costs on the next property. It ignores serviceability, which is usually the real limit: lenders also need your income and rents to cover all the loans. Use it to understand the mechanics and timing, not to plan purchases on its own.
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
What growth rate should I use?
Long-run growth varies widely by market and property type, and past growth does not guarantee future growth. Running the model at a few different rates shows how sensitive the timing is.
Why might I not be able to buy when the model says I can?
Lenders assess serviceability as well as equity. Your income, living costs, rents and existing debts set how much you can borrow in total, and that limit often bites before equity runs out.
Does the model include rent and holding costs?
No. It focuses on equity and debt. Rental income and holding costs affect your cash flow and borrowing capacity, which you can test with the cash flow calculator.
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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