What does break-even mean here?
The number of years until the property's combined returns (rental cashflow plus capital growth) recover the cash you invested up front.
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Break-Even Calculator (Property, Advanced)
How long until a property investment recovers the cash you put in, counting both annual rental cashflow and estimated capital growth.
years to break even ≈ cash invested / (annual cashflow + annual capital growth)
Frequently asked questions
Why include capital growth, not just rent?
Because for many investors growth is the bigger return. Counting only cashflow would overstate how long it takes to get your money back.
Is the straight-line assumption realistic?
It is a simplification. Real growth is lumpy, not steady, so the true break-even bounces around. The figure is a planning estimate, not a precise date.
What if cashflow is negative?
Then growth has to do the heavy lifting. If the combined annual return is positive overall, you still break even, just more slowly.
How does this differ from a simple payback?
A basic payback often counts only cashflow. This advanced version folds in capital growth, which is essential for property where growth usually dominates.