Free investor tool

Investment property ROI —
drag the sliders, watch the outcome

Adjust price, deposit, interest rate and growth. Compare buy-and-rent, live-in, granny-flat and subdivision strategies side by side — cash to settle, cashflow, equity and annualised return, live. Built by a Melbourne buyers agent.

By Joey Don · Co-Founder & CEO·Updated
Strategy
Inputs
Seed from a suburb (optional)
Buy price
$750K
House weekly rent
$600/wk
Deposit
20% ($150K)
Hold years
10 years
Interest rate
6.50%
Capital growth (annual)
5.0%
Rent growth (annual)
3.0%
Cash to settle
$195,500
+$0 LMI · $40K duty
Monthly P&I
$3,792
Loan $600K
Equity (yr 10)
$710K
From property worth $1.22M
Cumulative cashflow (yr 10)
$-228,875
Negative — out of pocket each year
Annualised return on cash
9.4%
Cash in $195,500 → grew to $480,630 over 10 years. No additional capex.
Break-even sale price
$937K
Net yield (yr 1)
4.1%
Total interest paid
$367,255

Year-by-year

Adjust the sliders — the chart updates live.
123456789100350K700K1.1M1.4M-26K-24K-22K-20K-18K
  • Property value
  • Equity
  • Loan balance
  • Annual cashflow
What this means, in plain English

Here is the scenario as you've set it: you buy this property for $750K and rent it out from day one. You hold for 10 years and assume 5.0% capital growth and 3.0% rent growth per year.

On day one, you need $195,500 in cash — that's your 20% deposit ($150K), $40K of VIC stamp duty, $5K in conveyancing and bank costs. The bank lends you $600K, which costs $3,792 a month at 6.50% over 30 years.

Year 1 rental income is $32K ($618/week × 52). After mortgage and holding costs, that's a negative cashflow of $-25,898. You're out of pocket about $25,898 a year — this is a growth play, not a yield play. The negative gearing offset against your salary recovers roughly 30-45% of that depending on your marginal rate.

Run it forward 10 years and the property is worth $1.22M. Your loan balance has paid down to $512K, so your equity is $710K. Cumulative cashflow over the hold is $-228,875. Together with the equity, your $195,500 of cash grew to $480,630 — an annualised return on cash of 9.4%.

That's a respectable result — comfortably ahead of ASX 200 long-run real returns. Most of the gain comes from leverage and capital growth, not yield.

The 60 sqm granny flat strategy (where the lot allows it) typically adds 3-5 percentage points to the annualised return, because the build cost is recovered in ~8-9 years through the extra rent and the resale value picks up most of the build cost as equity. Toggle the "+ Granny flat" strategy to see the side-by-side — and our due-diligence report checks whether one actually fits a specific lot.

All four strategies, same property

StrategyCash inEquity (yr 10)Cumulative cashflowAnnualised return
Buy & rent$195,500$710K$-228,8759.4%
Live in it$195,500$710K$-544,113-1.7%
+ Granny flat$397,900$1.01M$5,7169.9%
Subdivide$315,500$1.00M$-240,7619.2%

Want this for a specific address?

Our due-diligence report runs a projection like this on a real address — with its bank valuation, comparable sales, planning overlays, granny-flat siting check, schools and street-level data.

Explore suburb data →

This simulator is an illustration built on your chosen assumptions, not a forecast or financial advice. Stamp duty uses the VIC general (investment) schedule; granny-flat and subdivision figures are typical-case estimates — actual feasibility depends on the specific lot. Consider your own circumstances and seek licensed advice.

Sources
About this data

When you pick a suburb, the sliders are seeded from two open JSON files served by this site: median-prices.json — suburb median house prices compiled from Valuer-General Victoria publications (annual from 2013, quarterly to Q2 2025) — and rental-data.json — median weekly rents by area and dwelling type from the quarterly Homes Victoria Rental Report (March 2020 to September 2025 quarters). Both source publications are quarterly, and each file carries its source and current vintage in its own metadata block.

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