Detailed Property Investment
Returns Calculator
There are many variables and options in calculating the return on investment-on-investment properties.
It can be overwhelming on working out the real investment return.
It is always recommended that you consult with a property strategist, financial advisor and accountant before making any decisions.
Like any model or calculator, there are many assumptions. Here are our key assumptions on the property investment ROI calculations:
- It is assumed the investor has an interest-only investment loan, and the interest is deductible for tax purposes.
- When calculating the tax payables, the tax rates applicable to Australian residents are used. The 1.5% Medicare levy is included. The calculator does not incorporate any factors that might influence the amount of tax payable, such as Medicare levy surcharge, HECS contributions, any rebates, and deductions.
- The discount method is used to calculate capital gain tax if you hold the property for at least 12 months. The discount percentage is 50%.
- All months are assumed to be of equal length. One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.