Smarter Smaller Homes™ Calculator
Everyone else will show you the yield. We'll show you the whole picture: the rent, the running costs, the loan and what's left at the end of each week. Every figure is visible, and you can change any of them.
How it works
- Pick a design. Choose one of our five Smarter Smaller Homes™. We'll load realistic rent, costs and build price for you.
- Set your loan. Tell us roughly how much you'd borrow and at what interest rate. Not sure? Leave our starting figures in place.
- Read your result. You'll see whether the rent covers the loan, and how much you'd keep or top up each week.
Tip: Open "Adjust the assumptions" to change rent, rooms, running costs or project cost, or choose "My own figures" to enter your own project.
1 Choose a property design
We load realistic rent, running costs and build price for the design. You can change any of them under “Adjust the assumptions”.
You live in the main residence. The result shows how much of your mortgage the 4 rented rooms cover.
2 Set your loan
rent ÷ project cost
after running costs
money you put in
cash flow ÷ deposit
Adjust the assumptions
| Gross rent (rent × rooms × weeks) | |
| Management fee | |
| Other running costs | |
| Rent after running costs | |
| Loan repayments | |
| Cash flow after the loan |
Estimates only, before tax and depreciation. Land is not included unless you add it to the project cost. Not financial advice. See the notes below.
Understanding your result
“Pays for itself” or “You top up” tells you, in weekly dollars, whether the rent covers all the costs of holding the property. The badge above it shows how much of the loan repayments the rent covers. At 100% or more, the property pays for itself. Below 100%, you top up the difference.
A top-up means you would add money each week to hold the property. This is common in property investing. In Australia, a property that costs more to hold than it earns is called “negatively geared”, and many investors hold property this way while relying on long-term growth in value. Depending on your circumstances, some of the shortfall may be tax-deductible; your accountant can tell you whether that applies to you. To see where a project pays for itself, try a bigger deposit, a different interest rate or a design with more rooms.
Living Mortgage Free works differently: you live in the main residence, so the result shows how much of your mortgage the four rented rooms cover, not an investment return.
What the figures mean
- Rent coming in: rent per room × rooms × weeks rented per year.
- Running costs: management fee plus utilities, internet, insurance, council rates and maintenance.
- Rent after running costs: rent coming in minus running costs.
- Loan repayments: principal and interest on the amount you borrow (project cost minus your deposit), at the rate and term you choose.
- Left over / your top-up: rent after running costs minus loan repayments.
- Gross yield: yearly rent as a percentage of project cost, before any costs. This is the figure most property ads quote.
- Net yield: rent after running costs as a percentage of project cost.
- Your deposit: the money you put in.
- Return on deposit: what’s left over each year as a percentage of your deposit.
Starting figures
Each design loads an estimated rent of $430 per room per week for 50 weeks a year, an 8% management fee, estimated running costs and an indicative build price. The loan starts at a 30% deposit, 6.5% interest and a 30-year term. You can change all of these.
What's not included
- Land cost, unless you include it in the project cost
- Stamp duty, legal, council, approval and finance fees
- Income tax, depreciation and capital growth
- Vacancy beyond the weeks you set, and any increases in rent, costs or interest rates over time
Important information
This calculator is a general illustration only. It is not a valuation, forecast, rental appraisal, quote or offer, and it is not financial, tax, credit or legal advice. It does not take into account your objectives, financial situation or needs.
The starting figures are estimates provided by the Future Housing Taskforce and may change without notice. Actual build costs, rents, running costs, interest rates, lending conditions and approvals vary by location, lender, council, builder and operator. Results may differ significantly from those shown.
Before making any investment decision, get independent advice from a licensed financial adviser, your accountant and your lender, and obtain your own valuation and quotes. The Future Housing Taskforce accepts no liability for any decision made in reliance on this calculator. For our full terms, see our Legal page.
Regulation for this type of housing is under active review in many areas. Confirm the current position with the Future Housing Taskforce before you commit a dollar.
Want these numbers checked against your own block? Call 1800 10 1000 or Ask Us.