Return on investment and return on equity for a property: the total and annualised return on the price, and on the cash you actually put in once the loan is counted, after stamp duty, interest and costs. Leverage cuts both ways, and this shows both.
What you enter
- Purchase price, loan, rate and hold period
- Rent received and costs, and the exit price
What you get
- Total and annualised return, unleveraged and on your cash
- Every cost that came off the gross
- The exit price at which you break even
Worked example
$1,500,000 bought, $1,750,000 sold after 6 years, 75% loan
About 9.8% a year on your cash
- Unleveraged return
- 3.9% a year
- Return on equity
- 9.8% a year
- Breakeven exit price
- $1,612,000
Illustrative, for a Singapore citizen couple, 35, first property, $12,000 a month between them, $250,000 cash and $200,000 in CPF Ordinary Account unless the case says otherwise. Your own numbers replace every figure the moment you use the tool.
The rule behind it, in prose: Renting instead of buying: the arithmetic nobody shows you.
Answers: property ROI calculator singapore, return on equity leveraged.
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