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Renting out a S$780k condo? Here's what lands in your pocket each month
I ran a S$780k condo rented at S$3,200 a month through my rental calculator. Each month you top up a little. Over five years your tenant pays off S$75k of your loan and the whole investment makes S$143k. Here's how both are true.
By Titus Lim · 5 min read · Updated 21 Oct 2026
01
The quick sum we all do
S$3,200 rent against a S$2,162 instalment. That's about S$1,000 a month in your pocket, right? Not quite. The flat sits empty for a few weeks between tenants, and property tax on a rented home is far higher than on one you live in. Add MCST, insurance, repairs and the agent's fee, and most of that S$1,000 is gone.
02
Where the rent goes each month
Picture a Singapore Citizen buying a first property: a S$780k condo with a 75% loan at 2% over 30 years, rented out at S$3,200 a month, with half a month empty each year and a one-month agent fee every two-year lease.
Year 1, per month
| Item | Per month |
|---|---|
| Rent after empty months | S$3,067 |
| Loan instalment (S$964 interest + S$1,198 principal) | −S$2,162 |
| Property tax (non-owner-occupier rates) | −S$440 |
| MCST | −S$300 |
| Leasing agent fee, spread over the lease | −S$133 |
| Insurance and repairs | −S$71 |
| Monthly cash flow | −S$40 |
Property tax is the cost most owners miss. On a rented home, IRAS charges non-owner-occupier rates on the Annual Value: here about S$5,280 a year, against roughly S$1,000 if you lived in it.
03
Why a small top-up can still pay off
Of each S$2,162 instalment, S$1,198 pays down the loan. That isn't a cost: it lowers what you owe, and you get it back when you sell. Over five years your rent, after running costs, covers 98% of your instalments, and the loan drops from S$585,000 to S$510,146.
Loan left at the end of each year
Rent is what swings the monthly number. The same condo at different rents:
| Rent per month | Gross yield | Monthly cash flow |
|---|---|---|
| S$2,800 | 4.3% | −S$326 |
| S$3,200 | 4.9% | −S$40 |
| S$3,600 | 5.5% | S$247 |
| S$4,000 | 6.2% | S$514 |
04
What you walk away with after five years
If prices rise 3% a year, the condo sells for about S$904k in year 5. Here's how the profit adds up, counting every cost from stamp duty to the agent's fee on the way out.
Profit after 5 years
| Price gain | S$124,234 |
| Total rent | S$184,000 |
| Running costs | −S$56,650 |
| Loan interest | −S$54,882 |
| Buying costs (BSD S$18,000, reno, legal) | −S$31,400 |
| Selling costs | −S$22,712 |
| Total profit | S$142,590 |
Timing matters as much as rent. Sell after three years and Seller's Stamp Duty (8%, S$68,186) wipes out the gain: a loss of S$6,259. Hold for ten years and the profit grows to S$363,805, about 4.9% a year on your money.
05
When your loan rate goes up
Every extra point on the rate comes straight out of the monthly cash flow.
06
How I checked the numbers
I checked each rule against IRAS in October 2026: Buyer's Stamp Duty bands, ABSD rates, the Seller's Stamp Duty schedule for homes bought on or after 4 July 2025, and non-owner-occupier property tax rates. Every figure on this page comes from the calculator itself, using the sample figures it opens with.
This version also fixed two things: profit now subtracts buying costs such as stamp duty, and property tax now uses the rates for rented homes.
Key takeaways
- A 4.9% gross yield became −S$40 a month after the loan, property tax, MCST and agent fees.
- Your tenant still paid off S$74,854 of the loan in five years.
- At 3% price growth, the five-year profit was S$142,590, about 6.1% a year on your money.
- Selling within three years turned the profit into a S$6,259 loss because of Seller's Stamp Duty.
What the tool does not do
- The loan rate stays flat, and rent and costs grow at one steady rate.
- It doesn't include income tax on rent or CPF accrued interest.
- It doesn't check your loan limit (TDSR) or what similar units actually rent and sell for. That's where I come in.
FAQs
Is a negative monthly cash flow always bad?
Not always. Part of every instalment pays down the loan, which you get back when you sell. In the S$780k example you top up S$40 a month, but S$1,198 of each instalment is principal.
How is property tax worked out for a rented home?
Rented homes pay IRAS non-owner-occupier rates on the Annual Value: 12% on the first S$30,000, 20% up to S$45,000, 28% up to S$60,000 and 36% above. If you leave the Annual Value blank, the calculator uses rent × 12.
Does it include income tax on rent?
No. Rental income is taxable at your personal income tax rate after allowable expenses, so check your own position.
Can I use it for an HDB flat?
Yes. Choose HDB flat. Rent starts from year 6, after the 5-year minimum occupation period, and no Seller's Stamp Duty is charged.
Sources (4)
For education and illustration only. Figures depend on the inputs and the rules in force at the time of writing, and property values and rents can fall as well as rise. This is not financial advice.
Got a result you're not sure about?
A calculator is a good start, but it can't see what similar units are actually renting for, your loan limit on a second property, or what the project resells for. Send me your numbers and I'll take a look.