Property Investment Calculator

Description:

About the Property Investment Calculator

(2025 Update) Updated for the interest deduction reinstatement announced by the National-led Government in 2024

The phasing back in of interest deductibility will be complete from April 1 2025, with that in mind the calculator does not factor in interest deductibility for new purchases. If you would like a previous copy of the calculator that does factor interest deductibility, please purchase and then contact info@ifindproperty.co.nz 

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Understanding the numbers is the most critical part of your decision process when buying an investment property.  Unfortunately most people spend very little time looking at the cashflows and financials of a property.

Whether you’re buying your first rental property or you have a number of properties, you can use this calculator to help you do the sums.

How it works

You type in figures such as:

• Purchase price
• Loan amount
• Interest rate
• Various annual costs such as rates, insurance, maintenance, etc
• Rental income
• Property management cost
• Chattels value estimate (explained with an attachment)
• Annual expected % increases in capital growth and rent.
• Likewise annual expected % increases in ongoing costs
• Tax rate

The calculator will (over a 30 year period):

• Show you how much of the rent will cover the costs of owning the property and how much you will need to contribute (or what the positive cashflow is)
• Compare the Interest Only and Principal and Interest repayment costs
• Show you the effect of different levels of deposit 
• Show you what spending on a renovation will mean for your ongoing cashflow and equity return
• Give you an estimate of your potential tax changes (rebate or extra payment)
• Work out the Gross Cashflow (before tax) and Net Cashflow (after tax)
• Project your capital growth and cashflows over 30 years
• Allows for rental increases and CPI.

IMPORTANT

Any tax estimates are high level and this is NOT a tax management tool. It is designed to approximate, over both a calendar year and longer periods of time, what you can reasonably expect to earn in cashflow and capital growth. This is based on a set of inputs like price, deposit and rent, as well as insurance, rates, maintenance, interest rates etc. You are recommended to seek independent tax advice from a qualified accountant to more precisely quantify your tax liability and make sure you have the optimal structure to invest in property.