🏠 MORTGAGE & REAL ESTATE · UPDATED 2026

Rental Property Calculator

Calculate cash flow, cap rate, ROI, and true return on your Canadian rental property — including mortgage costs, vacancy, management fees, and tax impact.

🏘️

Cash flow is king in Canadian real estate investing

Many Canadian investors focus only on appreciation and miss the real numbers. A property that looks profitable can actually lose money after mortgage payments, property tax, maintenance, vacancy, and management fees are factored in. This calculator shows you the full picture.

📋 Property Details

🏠 Purchase Details
$
$
Min 20% required for investment properties
%
Investment property rates ~0.5% higher than primary
$
Land transfer tax, legal fees, inspection
$
Upfront costs before renting
💰 Rental Income
$
$
Parking, laundry, storage
%
Canadian avg ~3–6% · Budget for lost rent between tenants
%
ON 2026 guideline: 2.5% · BC: 3%
💸 Monthly Expenses
$
$
Landlord/rental property insurance
%
Typically 8–12% of gross rent · Enter 0 if self-managing
$
Budget 1% of property value/year
$
Enter 0 if tenant pays all utilities
$
Accounting, advertising, misc.
📈 Appreciation & Tax
%
Canadian avg ~4–5%/yr historically
%
Rental income is taxed at your marginal rate

📊 Monthly Cash Flow (Year 1)
$0
After all expenses including mortgage
Annual Cash Flow
$0
Cap Rate
0%
Cash-on-Cash Return
0%
Total ROI (10yr)
0%
Gross Rental Income
$0
Annual (after vacancy)
Total Annual Expenses
$0
Including mortgage
Net Operating Income
$0
Before mortgage (NOI)
Total Cash Invested
$0
Down payment + closing + repairs
Property Value (end)
$0
After appreciation
Equity at End
$0
Value minus mortgage balance

💚 Annual Income (Year 1)

Gross Rent$0
Other Income$0
Less Vacancy$0
Effective Gross Income$0

🔴 Annual Expenses (Year 1)

Mortgage Payment$0
Property Tax$0
Insurance$0
Management Fee$0
Maintenance$0
Utilities + Other$0
Total Expenses$0

📊 Return Metrics Explained

📋 Canadian Tax Note: Rental income is fully taxable at your marginal rate (you entered 0%). However, you can deduct mortgage interest, property tax, insurance, maintenance, management fees, and CCA (depreciation) — significantly reducing your taxable rental income. Consult a CPA for your specific deductions.

📅 Year-by-Year Projection

Year Monthly Rent Gross Income Total Expenses Cash Flow Property Value Equity

💡 Rental Property Tips for Canadian Investors

📐 The 1% Rule

A quick Canadian screening tool: monthly rent should be at least 1% of purchase price to potentially cash flow. On a $650K property that means $6,500/month — very hard in major cities, which is why cap rate matters more.

🏛️ 20% Down Required

CMHC mortgage insurance is not available for investment properties in Canada. You must put at least 20% down — and lenders typically qualify you using only 50–80% of rental income when calculating your TDS ratio.

🧾 Maximize Your Deductions

Canadian landlords can deduct mortgage interest (not principal), property tax, insurance, maintenance, management fees, advertising, and CCA (Capital Cost Allowance). Keep every receipt — these deductions can turn taxable income to zero.

📋 Principal Residence Exemption

If you rent part of your primary home (basement suite), you may still qualify for the principal residence exemption on sale — avoiding capital gains tax on your proportional share. Talk to your accountant before converting.