A true cost calculator estimates the full cost of holding a property over several years, including expenses that sit outside your mortgage repayment. It reveals hidden and recurring costs, so you can compare properties fairly and set a budget that survives the first year.
The true cost of owning a property is the sum of loan interest, holding costs and maintenance over time, and it is almost always higher than the mortgage repayment alone suggests. Two properties with the same repayment can have very different true costs. A modern townhouse with high strata fees can cost more to hold than an older house with low rates.
The Hub calculator is marked NEW, and it's designed for buyers and investors who want a longer-term view. You enter the price, loan details and expected costs, and it shows what you'll pay across a set horizon. Then you can test what changes if rates rise, if rent falls, or if you hold the property longer.
It's especially useful when you're choosing between two similar properties, weighing an apartment against a house, or testing whether an investment can be held through a rough patch.
The calculator covers the costs beyond your repayment: council rates, water, insurance, maintenance, strata or body corporate fees, land tax, property management, vacancy and rate rises. Each one is modest alone, but together they can add thousands of dollars a year to your holding cost.
We haven't put dollar averages here, because they vary widely by suburb and property type. Use quotes and recent bills for your own numbers.
Enter the price, loan amount, interest rate and your best estimates for each holding cost. The calculator adds them up and shows your annual cost, your total over the time you plan to hold, and how sensitive the result is to changes in rates or rent.
Here's the process:
Take an investment apartment bought for $600,000 with a $480,000 loan at 6.0% interest. Annual interest is $28,800. Add $2,200 in rates and water, $1,500 in insurance, $4,000 in strata, $2,300 in management fees and $1,500 in maintenance. That's $40,300 a year. If rent is $30,000, the property costs you $10,300 a year out of pocket before tax effects.
An investment apartment with a $480,000 loan at 6.0% and $11,500 in other yearly holding costs needs roughly $40,300 a year to hold, so a $30,000 rent leaves a $10,300 annual shortfall before tax.
Now raise the rate to 7.0%. Interest rises to $33,600, and the shortfall grows to $15,100. That's the kind of stress test that separates a sound purchase from a stretched one. The rate and figures are hypothetical, not a forecast.
Your lender approves a loan based on income and debts. It doesn't check whether you can also pay strata levies and a burst pipe repair.
Price and yield don't tell the whole story. Two properties at the same price can have very different running costs.
Investors who model costs and vacancy early make fewer forced decisions later. The Rental Yield Calculator gives you the income side, and this page gives you the cost side.
From 1 July 2027, changes announced in the 2026-27 Budget (ATO, 2026) affect how investors can use property losses and how capital gains are taxed. See the New CGT Assessor page for what's been announced.
Owner-occupiers carry costs without rental income to offset them, while investors have rent but also land tax, management fees and vacancy. The true cost calculator handles both views, but the way you read the result differs.
| Cost area | Owner-occupier | Investor |
|---|---|---|
| Rent income | None | Offsets costs, but can stop between tenants |
| Insurance | Building and contents | Landlord insurance plus building |
| Land tax | Usually exempt on main residence | Often applies above state thresholds |
| Property management | Not needed | Usually a percentage of rent |
| Vacancy | Not applicable | A planning allowance is needed |
| Tax treatment | Costs generally not deductible | Some costs may be deductible, subject to tax rules |
Owner-occupiers should read a true cost result against household income, while investors should read it against rent, tax outcomes and their ability to fund a shortfall.
Tax treatment depends on your circumstances and current law, so speak with a registered tax professional.
The Hub True Cost Calculator is part of a broker-built toolkit. You can move from a total-cost view to lending options, portfolio analysis and suburb research without switching platforms, and a broker can help if the numbers look tight.
Jane Slack-Smith brings more than 20 years of industry experience, two Mortgage Broker of the Year awards and a Money Magazine cover feature to the team.
Set aside a fixed annual amount for maintenance, and keep a separate cash buffer for surprises. A common planning approach is to save a percentage of the property's value every year, adjusted for its age and condition. Older properties need larger allowances than new builds.
We don't give a single percentage here because condition matters more than any average. A five-year-old apartment and a 50-year-old house have very different needs. A building and pest inspection before you buy gives you a real picture of what's coming.
Two habits help. Keep the buffer in an offset account or redraw facility where it reduces interest but stays accessible. And review your assumptions each year. Insurance and rates rise, and yesterday's estimate goes stale.
The Hub True Cost Calculator is part of a broker-built toolkit. You can move from a total-cost view to lending options, portfolio analysis and suburb research without switching platforms, and a broker can help if the numbers look tight.
Jane Slack-Smith brings more than 20 years of industry experience, two Mortgage Broker of the Year awards and a Money Magazine cover feature to the team.
Clients who model full costs before buying tend to pick properties they can hold comfortably, even when interest rates or rents move against them. Here's one example from the Investors Choice Mortgages client stories.
Michael T. from Sydney bought his second investment property, achieving a 7.2% yield. Investors at that stage usually check holding costs closely, because a second property adds to existing commitments.
Your outcome depends on your property, your loan and the market. The calculator estimates, and a broker tests the estimate against real lending options.
Repayments are only part of the story. Run the True Cost Calculator before you buy, then take your numbers to a broker who can check them against real lending options.
Call 1800 46 48 10 or email askus@investorschoice.com.au. You can also compare your result with the Buying Costs Calculator or browse other property calculators.
