The internet vs one rental / 04
An extra $80 in interest. Still ahead?
Same $650/week fictional rental. Change an assumption and see what’s left after costs and the repair reserve.The same fictional rental starts $60 a week ahead. Increase weekly interest from $420 to $500, and the cash left becomes a $20 weekly shortfall.
No signup Fictional figures Your assumptions
Make the call
How much interest could this rental carry?
Current weekly result-$20
Interest only. This example excludes principal repayments.
Change the other assumptions
Rent stops during vacancy. All modelled costs and reserve allocations continue.
Cash set aside for repairs. It is not a repair bill already paid or a tax deduction.
Cash shortfall after reserve
-$20/ week
-$1,040 over the year · averaged across 52 weeks
Compared with the original +$60/week: -$80/week.
Follow the money · annual
- Rent collected
- $650 × 52 rented weeks
- +$33,800
- Loan interest
- $500 × 52 weeks
- -$26,000
- Other running costs
- $110 × 52 weeks
- -$5,720
- Repair reserve set aside
- $60 × 52 weeks
- -$3,120
The link contains this fictional scenario’s assumptions. Anyone with the link can open them. No account or property details are needed.
All cards on the table
What’s in this example
This is one fictional rental, in Australian dollars. Weekly rent stays at $650 and other running costs at $110 so you can isolate vacancy, interest and the repair reserve. These figures are assumptions, not market averages.
Other running costs represent a combined allowance for items such as rates, insurance and water. Actual items and amounts vary by property. Interest, other running costs and reserve allocations continue for all 52 weeks, including vacant weeks.
The result is an annual average of cash left after the modelled costs and reserve allocation. It is not accounting profit, a tax calculation or a prediction. A reserve is cash set aside; spending that same reserve later must not be counted twice.
Principal repayments, income tax, land tax, strata fees, depreciation, capital growth, purchase and sale costs, letting costs and costs above these allowances are excluded. This example is not a complete property budget or financial advice.
Annual result = $650 × (52 − empty weeks) − 52 × (weekly interest + $110 + weekly reserve)
Same rental. Another pressure point.
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