Property investing is a long-term game.
But let’s be honest… when the market slows, values flatten, or holding costs start to feel heavier, it’s very normal to wonder:
“Is this property still worth holding?”
That question can be hard to answer when you’re relying on gut feel, headlines or a vague sense that “it should be growing more”.
So we’ve built a new tool inside Moorr to help make that question a little clearer. Introducing the Capital Growth Break-Even Calculator, now available on web inside MyPROPERTY.
Where to find it
The Capital Growth Break-Even Calculator is available now on web inside MyPROPERTY.
Log in to Moorr, head to MyPROPERTY, and start modelling your numbers.
What does it do?
The Capital Growth Break-Even Calculator helps answer one simple question:
How much does a property need to grow in value each year just to offset its after-tax holding cost?
In other words, if your property is costing you money to hold each year, this calculator estimates the annual capital growth rate required to bring the total return back to zero.
You can enter details such as:
- property value
- rental yield
- loan-to-value ratio
- interest rate
- purchase costs
- ongoing holding costs
- marginal tax rate
- negative gearing eligibility
From there, Moorr calculates the annual capital growth rate needed for the property to break even overall.
Why this matters
When property markets are moving strongly, it can feel easier to stay the course. But when growth slows or stalls, doubt can creep in quickly. A flat 12 or 18 months can make a property feel like it’s underperforming, even when the long-term numbers may still make sense.
That’s where the break-even growth rate can help.
Instead of asking, “Is this property growing enough?” in a general sense, you can compare its performance against a clearer benchmark:
What annual growth rate does this property actually need to cover its after-tax holding cost?
For example, a property may only need around 2–3% annual capital growth over the long run to offset its holding costs. Seeing that number can provide useful context, especially during slower market conditions.
It can also help you better understand whether your property’s required growth rate feels realistic based on the location, asset type and long-term fundamentals.
A quick example:
Let’s say you’re modelling an $850,000 property with:
- 3.5% rental yield
- 88% loan-to-value ratio
- 6.5% interest rate
- 6% purchase costs
- 1.5% annual holding costs
- 39% marginal tax rate
- negative gearing eligibility switched on
In this scenario, the property is running a gross annual loss of $31,620. After negative gearing, the post-tax holding cost reduces to around $19,288. That means the property would need to grow by approximately 2.27% per year to break even overall.
Of course, every property is different, which is why every input in the calculator is adjustable. You can drag the loan-to-value ratio and interest rate, change rental yield, adjust holding costs, update your tax rate, and switch negative gearing eligibility on or off to see how the numbers change.
Built to help you hold with more clarity
This calculator is not designed to tell you whether to buy, sell or hold a property. Instead, it gives you a clearer way to explore the numbers behind the decision.
A property going through a slow patch may look very different once you understand the growth rate it needs to break even over time.
On the flip side, if the required break-even growth rate is close to or above what the area has realistically delivered over the long term, that may be something worth investigating further with a qualified adviser.
The goal is simple: to help you separate normal market cycling from genuine risk, and to make more informed decisions using numbers instead of noise.
Important note
This calculator is an educational modelling tool only. It does not provide financial, tax, legal or property advice, and it should not be treated as a recommendation.
Assumptions, especially around negative gearing eligibility and tax treatment, should be checked against your own circumstances with a qualified adviser or accountant before making investment decisions.
