Investment Property Calculator
Understand what your savings or existing property equity could mean for your next investment property.
Our investment property calculator provides an indicative estimate based on your current financial position, helping you understand your potential starting point before developing a property investment strategy.
Understand your investment potential.
Some investors begin with savings. Others begin with property equity. Select the pathway that fits your position, then run a simple estimate.
Investing with savings
For investors with cash saved, property can be a way to put that capital to work and start building long-term wealth sooner.
Investing with property equity
For homeowners, existing equity can become the lever for your next investment property without relying solely on cash savings.
Existing home refinanced to a maximum 80% LVR. Investment purchase assumes a 20% deposit and 6% purchase costs, so 26% of the price is required upfront, with the investment loan at 80% LVR. Borrowing capacity is assessed at 9.25% over a 30-year principal and interest term, after your existing mortgage and average Australian living expenses. Expected rental income is included at a 4.5% gross yield, with 80% counted by the lender to allow for vacancy, management fees and maintenance. The tax benefit of negative gearing, including depreciation on new stock, is credited to serviceability, and household income is assessed across two earners. A maximum debt-to-income ratio of 6.0 applies as an upper cap only. Assumes no dependants, no personal loans, no credit card debt, no HECS and PAYG employment. Conservative estimate only, not a lending assessment.
Enter your details to estimate your investment potential.
How does the investment property calculator work?
The calculator gives an indicative estimate of your investment property purchasing potential, based on either your available savings or the usable equity in your existing home.
You can enter your details under either pathway. The savings pathway estimates what a cash deposit could support, while the property equity pathway estimates what could potentially be released from an existing home to fund a deposit on an investment property. Both pathways also take your household income into account, since borrowing capacity depends on income and expenses as much as on the funds available for a deposit.
The result shown is a potential purchase price for an investment property, based on conservative assumptions about interest rates, rental income and living expenses. It is designed to give you a realistic starting point for a conversation about property investment strategy, not a guaranteed outcome. If you would like to see how this fits into a broader approach, take a look at how we work.
Using savings to buy an investment property
Savings can go towards the deposit and purchase costs on an investment property, but they are only one part of what determines how much you can borrow.
When using savings, the calculator assumes a portion of the purchase price is required upfront to cover the deposit and associated purchase costs, such as stamp duty and legal fees, with the remainder typically funded through an investment loan.
Savings alone do not determine your borrowing capacity. Lenders also assess household income, existing debts and living expenses, along with the expected rental income from the property itself. Two investors with similar savings but different incomes or expenses may be able to borrow very different amounts, which is why the calculator asks for both.
Using equity to buy an investment property
Usable property equity is the portion of your home's value you could access without exceeding a lender's maximum loan-to-value ratio.
For homeowners, usable equity is generally the difference between your home's estimated value and your current loan balance, up to a set percentage of that value. Rather than selling, this equity can potentially be used toward the deposit and costs of another investment property, subject to lending approval.
Using equity does not guarantee approval for additional borrowing. Lenders will still assess your income, expenses and overall financial position before approving any new loan, and the amount of usable equity will vary depending on your circumstances and the individual lender's policies.
What determines how much you can invest?
Several factors work together to determine your investment property purchasing potential, and the calculator is built around the same broad considerations a lender would weigh.
- Household income. Lenders assess your income, and often the income of a co-borrower, against your ongoing expenses.
- Existing debts. Personal loans, credit cards and other commitments reduce the funds available for servicing a new loan.
- Borrowing capacity. The maximum a lender is prepared to approve, based on your income, expenses and the structure of the loan itself.
- Available savings. Cash you could put towards a deposit and purchase costs under the savings pathway.
- Usable property equity. The portion of an existing home's value that could potentially be released under the property equity pathway.
- Lender assessment. Every lender applies its own policies, interest rate buffers and serviceability calculations.
- Purchase costs. Stamp duty, legal fees and other costs involved in acquiring a property, on top of the purchase price itself.
Your calculator result is a starting point
The figure shown by the calculator is indicative only. It is a general estimate designed to help you understand your potential position, not financial, credit, tax or legal advice.
The calculator does not account for your credit history, dependants, specific existing debts, employment type, individual lender policies, or the particular features of any property you may be considering. Every lender assesses applications differently, and your actual borrowing capacity may be higher or lower than the estimate shown.
Before making any decision, we recommend speaking with a licensed financial or lending professional who can consider your full circumstances. You can also read our frequently asked questions for more on how Dominium Wealth works with property investors across Australia.
From investment potential to property strategy.
Property selection shouldn't begin with a listing. It should begin with understanding your financial position and long-term objectives.
At Dominium Wealth, we start with your financial position and your goals before we ever discuss a specific investment property. Once we understand your starting point and the property investment strategy that fits your circumstances, our team identifies opportunities matched to that strategy, with a view to building a property portfolio over time rather than completing a single transaction.