Rental property tax and cash flow calculator

The tax a rental adds or saves, and the cash it leaves.

The rent coming in from the house and the costs going out in coral

The rental

Loan interest a year Interest only. Enter 0 if none.

Interest only. Enter 0 if none.

Other costs a year Rates, insurance, repairs and agent fees.

Rates, insurance, repairs and agent fees.

Principal repaid $0 a year
Principal repaid a year Paid from cash, not deducted. Enter 0 if none.

Paid from cash, not deducted. Enter 0 if none.

A calendar leaf for the day the contract was signed

The contract

Day you signed to buy it A day before the year starts. It decides whether a loss can lower your other income.

A day before the year starts. It decides whether a loss can lower your other income.

Rental-loss exception No special rule
Special rental-loss rule A few kinds of rental keep the old treatment. Choose one only when your records confirm it.

A few kinds of rental keep the old treatment. Choose one only when your records confirm it.

A payslip for your other income

You

Other income a year Your taxable income apart from the rental, before tax. Enter 0 if none.

Your taxable income apart from the rental, before tax. Enter 0 if none.

How is the tax on a rental worked out each year?

Rent less the allowable costs, including loan interest, goes into your taxable income, and you pay tax on it at your rates. If the costs are more than the rent, the loss lowers your other income in 2026-27. Cash left is a different figure, because the principal you repay is not deductible and depreciation costs no cash that year.

A rental loss, before and from 2027-28

YearA rental loss
2026-⁠27 A rental loss Lowers your other income
2027-⁠28 A rental loss Carried forward if the contract was signed from 7:30 pm Canberra time on 12 May 2026, unless an exception applies

The calculator works out the year you choose and shows each step from the rent to the tax and the cash left.

A worked example

A rental earns $30,000 in rent in 2026-⁠27. Its loan interest is $18,000 and its other costs are $9,000, so its taxable result is $3,000. With $120,000 of other income, that adds $960 of tax. The $6,000 of principal repaid is not deductible, so after the costs, the principal and the tax the year ends $3,960 short, or $330 a month.

What people ask

How is tax on rental income worked out?

The rent less the deductible costs gives the rental's taxable result. It is added to your other income and taxed at your rates, so a loss lowers that income under the rules today. More in Tax on a rental each year and Rental income and cash flow.

What comes off rental income?

Loan interest, rates, insurance, agent fees, repairs and depreciation are deductible. The principal you repay is not. More in A free rental property spreadsheet, Is loan interest deductible? and Can you claim a loan's fees and stamp duty?.

How do I work out after-tax cash flow?

Take the rent, less the cash costs and the principal repaid, then the tax the rental adds, or add the tax it saves. Depreciation lowers the tax but isn't cash spent. More in Rental income and cash flow.

Where the rules come from

By Varun Agarwal. Updated

The ATO's figures on what landlords earn and lose, postcode by postcode, are in Rental income, losses and capital gains by postcode, 2023-24.