Free tool
Property Growth Calculator
Project what a property could be worth in the years ahead at a steady growth rate — and how much equity you would hold as the loan is repaid.
The property
The loan against it
Value in 10 years
$1,303,116
At 5% a year — $503,116 of growth
Your equity then
$764,694
Up from $160,000 today
Loan balance then
$538,422
Down from $640,000
Doubles in
14.2 years
At a steady 5% a year
Today and in 10 years
The value, split into what is owed and what is yours.
Today
- Loan$640,000
- Equity$160,000
In 10 years
- Loan$538,422
- Equity$764,694
Year by year
| Year | Value | Loan | Equity |
|---|---|---|---|
| Today | $800,000 | $640,000 | $160,000 |
| 5 | $1,021,025 | $597,001 | $424,024 |
| 10 | $1,303,116 | $538,422 | $764,694 |
How the number is built
| Value today | $800,000 | |
| + | Growth at 5% a year, compounded over 10 years | $503,116 |
| = | Projected value | $1,303,116 |
| − | Loan balance then | $538,422 |
| = | Your equity then | $764,694 |
General information only. Property does not grow at a steady rate: values can fall as well as rise, and past growth is not a guide to the future. The projection ignores selling costs, capital gains tax, renovations and any change in the loan rate. It is not financial advice or a recommendation to buy any property. Our Credit Guide sets out who we are and how we are licensed.
How growth compounds
Property growth compounds: each year’s growth is on top of the growth before it. An $800,000 property growing at 5% a year is worth about $1,303,000 after 10 years and about $2,123,000 after 20 — the second decade adds more than the first, from the same rate.
At 5% a year a property doubles in value in a little over 14 years. The rule of 72 — 72 divided by the rate — gives a close enough answer in your head.
Equity grows from both ends
Your equity is the value less the loan, and it grows twice over: the value rises while the loan falls. With a $640,000 principal-and-interest loan at 6.2% against that $800,000 property, equity is $160,000 today. After 10 years at 5% growth the loan is down to about $538,000 and equity is about $765,000.
On an interest-only loan the balance does not fall, so all of the gain comes from growth: about $663,000 of equity after the same 10 years. The difference is the principal you would have repaid.
Choosing a growth rate
The rate is the one number the calculator cannot give you. Over the past 20 years, Treasury’s analysis for the 2026 Budget found houses grew by an average of 5.8% a year for five-year holds and 6.1% for ten-year holds, and units by 4.1% and 4.8% — but those are national averages over a strong period, and individual suburbs have done far better and far worse.
Run a low, a middle and a high rate. At 3%, 5% and 7%, the same $800,000 property would be worth about $1,075,000, $1,303,000 or $1,574,000 in 10 years. If the investment only works at the high end of that range, that is worth knowing before you buy.
What the projection leaves out
The figures are before selling costs, before capital gains tax and before everything it costs to hold the property along the way. Capital gains tax is changing for gains that build up from 1 July 2027, and what a property costs each week depends on the rent, the loan and your tax position — our property cash flow calculator works that out.
Growth as a strategy
Growth is what turns one property into two. As equity builds, it becomes the deposit on the next purchase — our usable equity calculator shows how much of it a lender would let you use. It is the approach John Hanna sets out in Building Wealth through Property, and the plan our investment team builds with clients.
Frequently asked questions
How much will my property be worth in 10 years?
Nobody can tell you that, but the maths of an assumption is simple. An $800,000 property growing at 5% a year would be worth about $1,303,000 in 10 years; at 3% it would be about $1,075,000 and at 7% about $1,574,000. Running a low, middle and high rate shows the range, which is more honest than any single figure.
What is a realistic property growth rate?
Over long periods, Australian houses have grown faster than units. Treasury's analysis for the 2026 Budget, using Cotality data, found that over the past 20 years houses grew by an average of 5.8% a year for five-year holds and 6.1% for ten-year holds, and units by 4.1% and 4.8%. Individual suburbs and properties vary enormously around those averages, and past growth is no guarantee of future growth.
How long does it take property to double in value?
At a steady 5% a year, about 14.2 years; at 7%, about 10.2 years; at 3%, about 23.4 years. A quick estimate is 72 divided by the growth rate — the rule of 72 — which gives 14.4 years at 5%.
Does this take inflation into account?
No. The projection is in today's dollars growing at the rate you enter, so it is a nominal figure: some of any growth is inflation rather than real gain. That distinction now matters for tax, too — for gains building up from 1 July 2027, capital gains tax will use indexation to take inflation out of the taxable gain instead of the 50% discount.
How is my equity worked out?
Equity is the property's value less the loan against it. It grows from both ends: the value rises while principal-and-interest repayments bring the loan down. With an $800,000 property and a $640,000 loan, equity is $160,000 today; at 5% growth, and with the loan down to about $538,000 after 10 years of repayments, it would be about $765,000.
Want us to run these numbers properly?
A calculator works with the handful of figures it asks for. A strategy session works with your income, your debts, your tax position and what you are actually trying to build. The first one is free.
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