Australian commercial property calculator

Yield, cashflow and break-even on an Australian commercial property. Every line is shown so you can check it against your own numbers. No signup; calculations run in your browser and shareable links contain your scenario figures.

Property

State or territoryNew South Wales applies its general transfer duty scale to commercial property — the same rates as an investment residential purchase.Purchase priceMarket cap rateFrom comparable sales. Used to value the income — never guessed for you.

Current value & loan

Enter today's figures to see your current equity and growth since purchase. These inputs apply to the snapshot below; loan repayments use the original purchase loan.

Current market valueUsing purchase price until you enter a valuation.Current loan balanceUsing purchase price less deposit until you enter a balance.

Tenancy schedule

One row per lease. Rent is GST-exclusive.

Annual rentTerm remainingOutgoings recovered100% is a net lease, 0% is gross. This is the number that decides the real yield.Lettable areaOptional. Leave 0 if unknown — WALE by area needs every tenancy.Rent-free incentiveFitout contribution

Vacancy allowanceStructural vacancy across the building, as a percentage of rent.Other income (annual)Signage, car parking licences, rooftop telecoms.

GST

I am registered for GSTIf not, the GST in the price is a real cost you cannot claim back.How is the sale treated?

Purchase costs

Transfer duty is calculated for you.

Legal & conveyancingRegistration & transfer feesBuilding & technical due diligenceBuyer's agent feeLoan establishment feesOther purchase costs

Loan

DepositLoan $1,700,000 · LVR 65.38%Interest rateLoan termCommercial terms are usually shorter than residential.Interest-only period

Annual outgoings

Enter the landlord's full liability. What tenants reimburse is worked out from the tenancy schedule.

Council ratesLand taxEnter your own figure — land tax depends on all your holdings in the state.InsuranceWaterOwners corporationManagement feeOf gross passing rent.Repairs & maintenanceStatutory & complianceEssential safety measures, fire, lift and plant compliance.Other outgoingsCapex reserveExcluded from NOI by market convention, but shown separately — you still pay it.

Net passing yield

6.92%

on price

Positive cashflow

$24,279

per year

WALE

5.0 yrs

by income

Current equity & capital growth

Growth compares current market value with the purchase price, excluding purchase costs, selling costs and tax. It is cumulative, not annualised.

Current market value: $2,600,000
Current loan balance: $1,700,000
Current equity ($)Current market value minus current loan balance. Can be negative.: $900,000
Capital Growth vs Purchase ($): $0.00
Capital Growth vs Purchase (%)Change in market value divided by purchase price.: 0.00%

About duty in NSW

New South Wales applies its general transfer duty scale to commercial property — the same scale as an investment residential purchase.

Cash you need at settlement

Purchase price: $2,600,000
Transfer duty (NSW): $124,287
Other purchase costs: $13,700
Total cost of the property: $2,737,987
Less loan: − $1,700,000
Cash required: $1,037,987
LVR: 65.38%

GST

GST is a transaction tax on the property, not income tax. Commercial property is taxable, unlike residential.

Treatment: Taxable supply
GST in the purchase priceOne eleventh of the price, not 10% of it.: $236,364
Input tax credit you can claimYou still have to fund this at settlement — it comes back later.: $236,364
GST collected on rent each yearCollected and remitted. Not income, and excluded from every figure here.: $18,000
Input credits on outgoings each year: $1,982

GST of 1/11th of the price is included and claimable as an input tax credit. You must still fund it at settlement — it is a timing difference, not a saving.
Rent is a taxable supply: you add 10% GST, collect it from tenants and remit it. It is not income and is excluded from every figure here.

Income

Gross passing rent: $180,000
Outgoings recovered from tenantsApportioned by each tenancy’s share of rent, times its recovery rate.: $49,200
Effective gross income: $229,200

Outgoings

The landlord's full liability, before recovery.

Council rates: $14,000
Land tax: $11,000
Insurance: $6,000
Water: $2,400
Management fee4% of gross passing rent: $7,200
Repairs & maintenance: $5,000
Statutory & compliance: $3,600
Total outgoings: $49,200
Recovered from tenants: − $49,200
Borne by youThe gap between a net and a gross lease. This is what decides whether the headline yield is real.: $0

Net operating income

Effective gross income: $229,200
Less total outgoings: − $49,200
Net operating income: $180,000
Less capex reserveExcluded from NOI by market convention, because comparables are priced before capex — but you still pay it.: − $8,000
NOI after capex reserve: $172,000

Yields

Gross passing yield on price: 6.92%
Gross yield on current valueAnnual GST-exclusive passing rent divided by current market value, before vacancy and expenses.: 6.92%
Net passing yield: 6.92%
Net yield on total cost: 6.57%
Net yield after capex: 6.62%

Valuation

Net operating income capitalised at the cap rate you supplied.

Net operating income: $180,000
Market cap rate: 6.25%
Value at that cap rate: $2,880,000
Above asking pricePositive means the income supports more than the asking price at that cap rate.: +$280,000.00

Lease profile

Tenancies: 1
WALE by incomeA 6% yield on 9 years to a strong covenant is a different asset from 6% on 8 months.: 5.0 yrs
WALE by areaNeeds a lettable area on every tenancy — a partial average would be misleading.: Not applicable

Cashflow

Net operating income: $180,000
Less loan repayments: − $155,721
of which interest: $114,326
of which principal: $41,396
Annual cashflow: +$24,278.76
Monthly: +$2,023.23
Cash-on-cash return: 2.34%

Break-even

Gross rent to break evenCovers outgoings and full principal & interest repayments.: $155,721
Gross rent to cover interest only: $114,326
Interest rate to break even: 8.73%
Vacancy you can absorbHow much of the building can sit empty before cashflow turns negative.: 13.5%

How the commercial property calculator works

Enter the purchase price, loan terms and tenancy schedule to compare gross passing yield, outgoings recovery, net operating income and first-year cashflow. The lease profile also reports WALE and net effective rent.

Current equity equals current market value minus current loan balance. Capital growth compares market value with purchase price. Gross yield on current value divides annual gross rent by today’s value. These snapshot inputs do not change the original purchase-loan repayment model.

Calculations run in your browser. Shared links include your scenario figures in the URL. Rates and model assumptions have limitations; see the methodology and rate sources.