Australian finance and property calculators

Questions these calculators answer

How do you calculate capital growth?

Multiply the current value by one plus the growth rate, compounded for the number of years: FV = PV × (1 + r)ⁿ. A $750,000 property growing at 5% a year reaches $1,221,678 after 10 years. In today's money, after 2.5% inflation, that is closer to $954,000.

How does negative gearing work?

When a property's rent is less than its deductible costs, the shortfall is a loss that reduces your taxable income. At a 39% marginal rate including the Medicare levy, a $10,000 annual loss reduces tax by about $3,900 — so the after-tax cost of holding the property is $6,100, not $10,000.

How is a mortgage repayment calculated?

The standard amortisation formula spreads the loan over the term so each repayment covers that period's interest plus a slice of principal: P = L × r ÷ (1 − (1 + r)⁻ⁿ), where r is the periodic rate and n the number of periods. A $600,000 loan at 6.1% over 30 years repays $3,635.97 a month.

What is debt recycling?

Paying down non-deductible home loan debt, then re-borrowing the same amount through a separate split to invest. The debt total stays the same, but interest on the new split is deductible because the borrowed money produces assessable income. At a 39% marginal rate, $10,000 of interest moved across is worth about $3,900 a year.

How does an SMSF loan work?

Through a limited recourse borrowing arrangement. The fund borrows to buy a single asset held in a separate trust, and the lender's recourse is limited to that asset alone — the fund's other assets are protected. The fund must service the loan from rent and contributions, within the contribution caps.

How does a novated lease save tax?

Only the portion of the package that survives as a pre-tax deduction saves anything. FBT on twenty per cent of the car's base value is normally cancelled by paying that amount from post-tax salary, so the saving is your marginal rate applied to whatever remains — which is why an FBT-exempt electric car packages so much better than a petrol one.

How much super will I have at retirement?

It depends on your balance, salary, contributions, returns and fees. Starting at 35 with $60,000, a $95,000 salary growing 3% a year, the 12% guarantee, 6% returns and 1% fees, a projection to 67 gives about $1,373,408 in future dollars, or $623,212 in today's dollars at 2.5% inflation.

How long will my super last in retirement?

A balance lasts as long as its earnings plus the balance itself can fund your withdrawals. With $700,000 at 67, 5% returns, 2.5% inflation and $55,000 a year of spending in today's dollars, the money lasts about 15 years, to roughly age 82. The same balance sustains about $37,729 a year to age 92.

How much can I borrow for a home loan in Australia?

Lenders work out your monthly surplus after tax, living costs and debts, then find the largest loan whose repayments that surplus could meet at your rate plus a 3-point buffer. On $120,000 with $38,400 a year of living costs and a 6.2% loan over 30 years, that is roughly $535,984. Each lender's own assumptions will differ.

How much do extra repayments save on a home loan?

On a $500,000 loan at 6.2% with 25 years left, adding $300 a month and a $10,000 lump sum now cuts about 5.2 years off the loan and saves around $122,348 in interest. The earlier the extra goes in, the more it saves.

How much does an offset account save?

Interest is charged only on the loan balance minus the offset balance. With $40,000 sitting in the offset on a $600,000 loan at 6.2% over 30 years, you save about $179,019 in interest and clear the loan about 4.0 years sooner, as long as you keep the repayment the same.

Is it worth refinancing my home loan?

It is worth it when the repayment saving over the time you will keep the loan is larger than the costs of switching. Moving $550,000 from 6.4% to 5.9% over 27 years saves about $172.85 a month, and with $900 of fees less a $2,000 cashback you are ahead from the first month.

How do I calculate rental yield?

Gross yield is annual rent divided by the purchase price: $600 a week is $31,200 a year, which on $700,000 is 4.46%. Net yield subtracts vacancy, management and running costs first, and for these figures comes to 3.06%.

How does negative gearing save tax?

When rent is less than deductible costs, the loss reduces your taxable income, so you pay less tax at your marginal rate. A $18,000 loss on a $110,000 income saves about $5,760 in tax and levy, so the property costs you about $12,240 after tax. It is a cost reduction, not a profit.

How do I calculate car loan repayments?

Use the loan repayment formula: a $40,000 loan at 8.5% over 5 years costs $820.66 a month. A balloon payment of 30% at the end lowers the monthly repayment to $659.46, but you still owe the balloon and pay interest on it throughout, so the total cost is higher.

How much money do I need to buy my first home?

The deposit (often 5% to 20% of the price), plus stamp duty after any first home buyer relief, plus legal, inspection and lender costs, which commonly total a few thousand dollars. In a state with a duty exemption at your price, such as New South Wales up to $800,000, duty is nil and the upfront cost is mostly the deposit.

How much Age Pension will I get?

A single homeowner can receive up to $1,237.70 a fortnight including supplements, reduced by 50 cents for each dollar of income above $226 a fortnight and by $3 a fortnight for each $1,000 of assets above $333,000. With $450,000 of assessable assets and $180 a fortnight of income, the assets test gives about $886.70 a fortnight.

How do I calculate compound interest?

Multiply the balance by one plus the periodic rate each period and add your deposits. $10,000 with $300 added each month at 5% a year for 10 years grows to $63,055, of which $46,000 is what you put in and $17,055 is interest.

How long will it take to save a goal?

Add your monthly saving and the interest it earns until the balance reaches the goal. Starting with $2,000 and saving $400 a month at 4.5% interest, $20,000 takes 41 months, about 3.4 years. To reach it in 3 years you would need about $460 a month.

How is term deposit interest calculated?

For interest paid at maturity, multiply the amount by the rate and the term in years: $25,000 at 4.5% for 12 months earns $1,125. If interest is paid monthly and left in, it compounds slightly, giving $1,148. Deposits are protected by the Financial Claims Scheme, which protects up to $250,000 per account holder at each authorised deposit-taking institution.

How much will a personal loan cost me?

Use the repayment formula for the amount, rate and term, then add the fees. $15,000 at 9.5% over 5 years is $315.03 a month, $3,902 of interest, and with a $250 establishment fee the loan costs $4,152 in all.

How long will it take to pay off my credit card?

Add a month's interest to the balance, subtract your payment, and repeat until nothing is left. A $5,000 balance at 19.99% with $200 paid each month takes 33 months and costs $1,521 in interest. Paying only the minimum takes many times longer, because the minimum falls as the balance does.

How do I calculate my debt-to-income ratio?

Add up all your debts, including the new loan, and divide by your gross annual income before tax. $540,000 of debt on an income of $120,000 is a DTI of 4.5. Lenders look closely above 6, a level regulators also watch.

How do I calculate LVR?

Divide the loan by the property's value. A $560,000 loan on a $700,000 property is an LVR of 80%, which means a deposit of 20%. Lenders mortgage insurance is usually added when the loan is above 80% of the property's value.

How much do superannuation fees cost?

Fees reduce your return each year, so over 25 years a fund charging 1.5% instead of 0.5% on $80,000 with $7,000 added a year at 6.5% gross return leaves $135,560 less: $761,444 against $625,884.

Is it better to rent or buy?

It depends on how long you stay and what prices, rents and returns do. With a $850,000 home, $170,000 deposit, 6.0% loan and $650 weekly rent over 10 years, buying leaves net wealth of $663,981 against $621,298 for renting and investing the cash. Buying comes out ahead on these assumptions.

How do I compare two loans?

Work out the total you will pay on each: repayments plus fees. On a $30,000 loan, A at 8.5% over 5 years with a $350 fee costs $37,280 in all, while B at 7.9% over 7 years with a $10 monthly fee costs $39,992. Loan A is cheaper by $2,712, even though B has the lower rate.

Should I pay the highest rate or the smallest debt first?

The avalanche method, highest rate first, always costs the least interest; the snowball method, smallest balance first, can feel faster because debts disappear sooner. For $28,500 of debts and $200 extra a month, avalanche takes 38 months and $5,870 of interest, and snowball 39 months and $5,957.

How do I calculate my net worth?

Add up your assets, then subtract your debts. Assets of $1,020,000 and debts of $550,000 give a net worth of $470,000. Your super balance counts as an asset even though it is locked away for now, and the family home counts even though it is not for sale.

How do I calculate the effect of inflation?

Multiply the amount by the CPI at the end divided by the CPI at the start. The ABS index stood at 75.45 in the June 2016 quarter and 102.31 in the June 2026 quarter, so $100 in 2016 has the buying power of $135.60 in 2026, a rise of 35.6%, or 3.09% a year. For the future, multiply by one plus the inflation rate for each year.

How much should I have in an emergency fund?

Multiply your essential monthly costs by the number of months you want covered. Essential costs of $3,800 and a target of 6 months give $22,800. With $4,000 saved and $400 added each month at 4.0% interest, you reach it in 43 months, about 3.6 years. Three to six months is a common range.

How does the 50/30/20 budget rule work?

Spend half of your after-tax income on needs, 30% on wants and put 20% towards savings and extra debt repayment. On $5,200 a month that is $2,600 on needs, $1,560 on wants and $1,040 on savings. It is a starting point, not a law, so change the percentages to suit your costs.

How do I calculate a rent increase?

Multiply the weekly rent by one plus the percentage rise. A 5% rise on $650 a week gives $682.50 a week, $1,365.00 a fortnight and $2,957.50 a month, an extra $1,690 a year. Monthly rent is the weekly rent times 52 divided by 12, not times four.

How do I split the rent fairly between flatmates?

Subtract any premiums for extras like an ensuite, divide the rest by room size, then add the premiums back to the right rooms. For $1,900 a week across rooms of 16, 12 and 10 m² with a $60 ensuite premium, the biggest room pays $834.74 and the smallest $484.21.