Commercial Property Purchase Calculator
Work out the cash you need at settlement, how GST and duty affect the timing, what the lease actually returns after outgoings, and whether the rent covers the loan. Every figure is shown excluding GST unless it is labelled otherwise.
Property and transaction
The basics of the asset and the contract.
Price excluding GST $800,000 · GST $0 · Including GST $800,000
Price per building m² $2,857 · Security value for lending $800,000
GST treatment
GST you can claim back is a settlement timing item — never income and never a property expense.
Peak settlement funding required $290,070
Net cash invested after expected GST credit $290,070
A leased property is not automatically a GST-free going concern. The legal requirements and contract wording must be confirmed.
Duty, land tax and CIPT
CIPT status must be checked through the contract, property clearance information and professional advice.
Calculated duty $43,070 · Applied $43,070
Annual CIPT estimate $0 · 1% of site value once applicable
Rate version VIC-2026.1 · VIC-CIPT-2026.1
CIPT status is unknown, so duty has been calculated conservatively in full.
No site value entered, so the CIPT estimate cannot be calculated.
CIPT status must be checked through the contract, property clearance information and professional advice.
Commercial loan
Commercial lending is priced case by case. There is no residential-style LMI here — use the lender risk or approval fee instead.
Loan $560,000 · Deposit $240,000 · Actual LVR 70.00%
Monthly interest $3,500 · Annual debt service $42,000
Facility expiry 2031-12-02
The facility term is shorter than the amortisation period, so a balloon balance will fall due and need refinancing at expiry.
Lease and rent
All rent figures exclude GST.
Annual base rent $46,200 · Rent per m² $165
Effective rental income after vacancy $45,276
Property outgoings
Enter the annual amount and how much the tenant reimburses. Recoveries are counted once, on the income side.
Council rates
Water and sewerage
Land tax
CIPT
Owners corporation fees
Building insurance
Repairs and maintenance
Fire and essential safety compliance
Property management
Accounting and administration
Structural / capital expenditure reserve· excluded from NOI
Other expenses
Total outgoings $13,100 · Recovered $7,600 · Unrecovered $5,500
Operating expenses excluding the capital reserve $13,100 · Capital reserve $0
Vacancy, leasing and incentives
Used for the first-year lease-up result when the property is vacant or partly vacant.
The property is marked as currently leased, so only the stabilised result is shown. Change the purchase status to see the lease-up scenario.
Purchase costs
Everything payable to complete the purchase.
Total non-recoverable purchase costs $50,070 (including duty and upfront finance costs)
Total acquisition cost $850,070
Cash flow and return summary
Purchase and funding
Annual income and expenses
Loan and cash flow
Break-even and value
Stabilised result
The interest rate is above the capitalisation rate, so the borrowing is currently working against the return.
Green marks a genuinely favourable outcome, amber a caution and red a material shortfall.
Conservative, Base and Optimistic
Edit any assumption in a column. Swipe sideways on a phone.
- Net operating income
- $34,054
- Annual cash flow
- -$13,546
- Cap rate
- 4.26%
- DSCR
- 0.72
- Cash-on-cash
- -4.67%
- Indicative value
- $515,967
- Net operating income
- $39,776
- Annual cash flow
- -$2,224
- Cap rate
- 4.97%
- DSCR
- 0.95
- Cash-on-cash
- -0.77%
- Indicative value
- $679,932
- Net operating income
- $43,285
- Annual cash flow
- $5,485
- Cap rate
- 5.41%
- DSCR
- 1.15
- Cash-on-cash
- 1.89%
- Indicative value
- $809,065
Leased vs vacant — same price and finance
| Measure | Leased | Vacant possession |
|---|---|---|
| Effective rental income | $45,276 | $0 |
| Net operating income | $39,776 | -$5,500 |
| Annual cash flow | -$2,224 | -$47,500 |
| First-year cash result | -$2,224 | -$31,761 |
| DSCR | 0.95 | -0.13 |
Risk observations
Educational flags based on the figures entered. They are not lending decisions — no lender approval or decline is implied.
Debt service coverage is below 1.00
Net operating income does not cover the annual debt service, so the shortfall has to come from other cash.
Interest coverage is weak
Net operating income is less than 1.5 times the interest bill, which is a tight buffer for a commercial facility.
Borrowing cost is above the cap rate
The interest rate exceeds the property's capitalisation rate, so the debt is diluting the return rather than lifting it.
A single tenant provides all income
One departure takes income to zero. Consider what the property is worth to the next tenant.
CIPT status is unknown
CIPT status must be checked through the contract, property clearance information and professional advice.
Site value or land tax has not been entered
Land tax and CIPT are recurring owner costs. Without them the annual result is understated.
A balloon balance falls due at facility expiry
The facility term is shorter than the amortisation period, so the remaining balance must be refinanced or repaid.
Validate My Numbers
Commercial transactions can involve property-specific GST, duty, lease and lending treatment. Review your figures with an accountant, solicitor, commercial property adviser or finance professional before relying on the result.
Methodology and disclaimer
Calculation version COMMERCIAL-2026.1 · effective 2026-07-01 · duty and CIPT rate version VIC-2026.1 · VIC-CIPT-2026.1.
- Net operating income never deducts loan repayments, income tax, depreciation, acquisition costs or capital expenditure.
- Recoverable GST is treated as settlement timing only, never as income or as permanent cash invested.
- Tenant recoveries are counted once, on the income side of the calculation.
- Cap rate uses the purchase price excluding recoverable GST; yield on cost uses the total acquisition cost excluding recoverable GST.
- First-year lease-up results are kept separate from the stabilised result.
Official sources:
- ATO — GST and property
- State Revenue Office Victoria — land transfer duty
- State Revenue Office Victoria — commercial and industrial property tax
- State Revenue Office Victoria — land tax
PropertyROI calculations are estimates for educational and scenario-analysis purposes only. They are not financial, credit, taxation, legal, property or investment advice. Commercial loan terms, GST treatment, duty, CIPT, land tax, lease obligations, expenses, market rent, cap rates and property values vary according to the transaction and individual circumstances. Verify all figures with the relevant authority and qualified professionals before making a financial decision.