Is property or shares a better investment in Australia?

There is no universal answer. Property offers leverage, negative gearing tax benefits and the PPOR CGT exemption. Shares offer liquidity, diversification, franking credit refunds and lower transaction costs. The key variables are your marginal tax rate, holding period, loan size and whether you intend to owner-occupy. This calculator lets you compare both side by side with your own numbers.

What is cashflow neutrality and why does it matter?

Cashflow neutrality ensures both the property investor and shares investor have identical out-of-pocket cash flows each year. This isolates asset returns from savings rates, making it a true apples-to-apples comparison. Our calculator verifies neutrality to within $1 per year.

How does negative gearing work in Australia?

Negative gearing occurs when your rental income is less than your interest and ownership costs. The net loss is deductible against your other income, reducing your tax bill. For example, at a 37% marginal rate a $10,000 annual loss saves $3,700 in tax. The calculator models this automatically based on your rental yield, interest rate and marginal tax rate.

How does FIFO CGT calculation work?

FIFO (First-In-First-Out) tracks each share purchase as a separate lot with its own cost base and purchase date. When selling, the oldest lots are sold first. This is the correct method per ATO guidelines and differs from average cost basis methods used by simpler calculators.

Does the calculator include stamp duty for all Australian states?

Yes. Stamp duty is automatically calculated for all 8 Australian states and territories (NSW, VIC, QLD, WA, SA, TAS, ACT, NT) with 2025-26 rates, including First Home Buyer concessions where applicable.

What is Division 43 depreciation for investment property?

Division 43 (capital works deduction) allows owners of income-producing buildings constructed after 16 September 1987 to claim 2.5% of the original construction cost as a tax deduction each year for 40 years. Division 40 covers plant and equipment using effective life schedules. Both are included in this calculator.

Is the calculator free to use?

Yes. The calculator is completely free with no sign-up required. Pro features (saved scenarios, CSV export) require a Tepuy+ subscription.

Property vs Shares Calculator Australia (2026) | CGT, Negative Gearing & Monte Carlo

🔗 Shared scenario loaded. Someone shared this scenario with you — all inputs have been pre-filled. Results are calculating automatically.

Buy vs Rent? PPOR vs Investment? Property vs Shares?

This calculator compares any property strategy against shares with complete tax accuracy. Model your Principal Place of Residence (PPOR) with CGT exemption, or run as an investment property with negative gearing, depreciation, and rent. All scenarios use cashflow neutrality — both paths get identical capital and annual contributions — for a true apples-to-apples comparison across Australia's 8 states.

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Australian Property vs Shares

Configure your scenario on the left and click Run Comparison. Both paths start with identical capital. Annual cashflows are equalised year by year so the comparison is genuinely apples-to-apples.

Key Insights

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Property IRR

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Annual return on capital

Shares IRR

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Annual return on capital

Property Net Proceeds

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After CGT, agent fee, loan repaid

Shares Net Proceeds

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After CGT, brokerage, margin loan

Future Value Winner

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Net exit proceeds advantage at end of period

Present Value Winner @ 5%

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Future advantage discounted to today's dollars

Property Terminal PV

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Exit proceeds @ 5% discount

Shares Terminal PV

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Exit proceeds @ 5% discount

Break-even Year

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First yr shares equity ≥ property equity

Total Depreciation

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Div 40 + Div 43 claimed

Equity & Net Worth Over Time

Annual Property Cashflow (Net to Investor)

Cashflow Neutrality Verification –

This verifies that both investors have identical pocket cashflows each year. Any difference beyond ±$1 indicates a calculation error.

Mode–

Max diff–

Infeasible–

Year	Age	Property CF	Shares Pocket CF	Diff	Status

Target: Max per-year diff ≤ $1. This ensures we're comparing investment returns, not savings rates. Scenarios that cannot maintain equalized cashflows are flagged instead of silently clipped.

Monte Carlo — Net Proceeds After CGT

Property P50

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Property P10

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Property P90

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Property Wins

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Shares P50

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Shares P10

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Shares P90

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Shares Wins

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Methodology note will appear after calculation.

Division 40 + Division 43

Year	Div 43 Building	Div 40 Plant	Total Deduction
Total over period:			–

Sensitivity — Winner Grid

Each cell shows winner and $ margin. Property vs shares growth rates are varied; other inputs held constant.

Impact on Outcome — Tornado Chart

Each bar shows how much the Property vs Shares net advantage changes when one input is moved to a low or high scenario, holding all others constant. Blue = more favourable to property, red = less favourable to property. Variables ranked by total swing — widest bar is the biggest driver.

Variable	Base	Low scenario	Δ at low	High scenario	Δ at high	Total swing

Δ = change in (Property net proceeds − Shares net proceeds) vs base case. Each variable tested independently. Combined effects may differ.

Year-by-Year Detail

Property

Purchase price–

Loan amount–

Total starting capital–

Stamp duty–

LMI–

Offset account–

Neutrality mode–

Max cashflow diff–

Interest rate–

Rental yield–

Rent growth rate–

Property growth (CAGR)–

State–

Property CGT at exit–

Agent fee at sale–

Total depreciation–

Shares & Investor

Share growth (CAGR)–

Dividend yield–

Franking %–

ETF MER–

Shares CGT at exit–

Investment years–

Structure–

Marginal tax rate–

Δ Future Value –

Δ Present Value @ 5% –

Terminal PV = exit proceeds discounted at 5% pa. Under cashflow equalisation, annual flows are identical in both paths — so Terminal PV reflects the time-value of exit proceeds.

Purchase price	$900,000
Loan	$720,000 (80% LVR)
Interest rate	6.2% pa
Stamp duty (NSW investor)	~$35,000
Total starting capital	~$220,000
Rental yield	4.5% (~$40,500/yr gross)
Rent growth	3.0% pa
Capital growth	6.5% pa
Marginal rate	37%
Investment horizon	20 years
Shares CAGR	8%, Yield 4%, Franking 70%

Depreciation Not Applicable

Property

Shares & Investor

⚖️ The Core Principle — Apples-to-Apples Comparison

🏡 PPOR vs Investment Mode

♻️ Debt Recycling — Is It Fair to Both Sides?

📊 Which Metric to Focus On

🔢 Methodology — Step by Step

📝 Base Case: Investor Individual, Sydney House

🏡 PPOR Scenario Comparison

⚠️ Assumptions & Limitations

❓ Frequently Asked Questions

📖 Related Reading

🔢 Key Concepts