Investment Property Cash Flow
Compare rent, operating costs, mortgage interest and repayments.
Estimate whether an investment property is positively or negatively cash-flowing before personal tax. Interest and principal are shown separately. Value growth is a hypothetical scenario, not rental income or an investment forecast.
Property and financing
Annual operating costs
Illustrative results
Net operating income (before interest):
Cash flow after interest and principal:
Gross rental yield: · Net operating yield:
Estimated property equity:
Illustrative one-year equity change (excluding tax, purchase/sale costs and loan changes other than principal):
How the maths works
- Scheduled rent = weekly rent × 52; received rent = weekly rent × (52 − vacancy weeks).
- Net operating income = received rent − recurring operating costs.
- Interest estimate = outstanding loan × annual interest rate. This assumes a constant outstanding loan balance for this simple annual interest estimate.
- Annual cash flow = net operating income − interest − principal repayments.
- Equity = market value − loan balance. Gross yield = scheduled annual rent ÷ market value. Net operating yield = NOI ÷ market value.
- Illustrative equity change = assumed value change + principal repaid, with all other factors fixed. It is not a realised investment return.
Excluded: stamp duty, depreciation, land tax rules, strata costs unless entered, refinancing, cash reserve needs, tax deductions, capital gains tax and personal circumstances. Negative gearing is not calculated here. Seek qualified advice for tax questions.
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For general educational information only, not financial or taxation advice.