Property Investment Return Calculator Australia

About the Property Investment Return Calculator

This projects the total return on a residential investment property over a holding period, combining two sources of return: capital growth (the change in the property's value) and rental income collected along the way. It focuses on the long-term total return picture, not month-to-month cash flow.

How it works

The property value is compounded forward each year at your assumed annual capital growth rate to get a projected future value; the difference between that and today's value is the capital gain. Weekly rent is multiplied by 52 and by the number of years to estimate total rent collected over the holding period (assuming no vacancy). Total return is capital gain plus total rent collected, and average annual return divides that total return by the property value and by the number of years — a simple average, not a compounded annual growth rate.

Assumptions and behaviour

• Applies a constant annual growth rate for the whole holding period — real property markets move in cycles, not smoothly.
• Assumes no rental vacancy and a constant weekly rent — no allowance for rent increases or vacant periods.
• Average annual return is a simple average (total return ÷ value ÷ years), not compounded — it will read lower than a compound annual growth rate (CAGR) for the same inputs.
• This tool looks at total return over the full holding period, not year-to-year cash flow — for ongoing rental cash flow (rent minus mortgage, rates, and other outgoings each year), see a property cash flow calculator instead.

Limitations

• Doesn't deduct purchase costs (stamp duty, conveyancing), selling costs (agent commission), holding costs (rates, insurance, maintenance, property management fees), mortgage interest, or tax (capital gains tax, income tax on rent).
• Doesn't model vacancy periods, rent increases, or market downturns — growth is a flat assumed rate.
• For a year-by-year net cash flow view of an investment property, use a dedicated property cash flow calculator alongside this tool.

Privacy

The calculation runs entirely in your browser. Nothing is uploaded or stored.