ROI Metrics: Total Return, Break-Even, Future Value

Glossary Updated
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Quick Definition
Net profit (rental income + capital gain minus all costs) expressed as a percentage of the original purchase price.

What Does It Mean?

Total Return

Net profit (rental income + capital gain minus all costs) expressed as a percentage of the original purchase price. This is your overall ROI.

Break-Even Point

The number of years for net rental income to fully cover the total purchase price and all costs, at which point your investment becomes profitable.

Future Value

The estimated property value at the end of the holding period, calculated by compounding the annual appreciation rate over the number of years held.

Total Costs

The sum of all costs over the holding period: mortgage interest, IRAS property taxproperty tax, condo fees, maintenance, and initial acquisition expenses.

Total Net Rental Income

Cumulative net rental income over the entire holding period, calculated after deducting the expense ratio from gross rent.

Capital Gain

The increase in property value over the holding period, based on the annual appreciation rate compounded over time.

How Is It Calculated?

Total Return

Total Return = (Net Rental Income + Capital Gain − All Costs) ÷ Purchase Price × 100
Formula

Break-Even Point

Break-Even Year = Total Cost ÷ Annual Net Rental Income
Formula

Future Value

Future Value = Purchase Price × (1 + Appreciation)Years
Formula

Capital Gain

Capital Gain = Future Value − Purchase Price
Formula

Where to Find This on ShiokNest

  • Buy-to-Rent ROI Calculator
  • End-to-End Investment Calculator
  • Buy-to-Live ROI Calculator

Look for the tooltip icon next to this metric on ShiokNest for a quick reminder of its definition.

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This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of March 2026. Check official sources for the latest.