Rental Property ROI Calculator (Canada)
Estimate rental property returns in Canada: cash flow, cap rate, cash-on-cash, break-even, and a simple holding-period ROI model with charts.
Inputs
Results
| Monthly breakdown | Amount |
|---|---|
| Effective rent (after vacancy) | $0 |
| Mortgage payment (P&I) | $0 |
| Property tax | $0 |
| Insurance | $0 |
| Condo/HOA | $0 |
| Utilities | $0 |
| Maintenance reserve | $0 |
| Management reserve | $0 |
| CapEx reserve | $0 |
| Net cash flow | $0 |
| Holding period snapshot | Estimate |
|---|---|
| Projected sale price | $0 |
| Remaining mortgage balance | $0 |
| Net sale proceeds (after selling costs) | $0 |
| Total cash flow collected | $0 |
| Total profit (simple) | $0 |
This is a planning estimate. Taxes, financing terms, rent controls, and maintenance timing can materially change real returns.
Visual
How to use
- Enter purchase price, down payment, mortgage rate, and amortization.
- Enter monthly rent and vacancy. Add taxes, insurance, condo/HOA, and utilities (owner-paid).
- Set planning reserves for maintenance, management, and CapEx as % of rent.
- Choose a holding period and growth assumptions, then click Calculate.
- Review cash flow, cap rate, cash-on-cash, and the ROI snapshot + charts.
How to evaluate rental property ROI in Canada
Rental property returns are usually a mix of three sources: cash flow (money left after all monthly costs), loan paydown (principal you pay through the mortgage), and price appreciation (property value growth). A good ROI model separates these parts so you can see what you’re really betting on. Some properties are “cash flow” investments (strong monthly surplus), while others rely more on appreciation and equity buildup.
A common quick check is the cap rate. Cap rate uses annual NOI (net operating income) divided by purchase price. NOI excludes mortgage payments, so cap rate lets you compare properties regardless of financing. It’s especially useful when comparing two listings in different neighborhoods. However, cap rate is not the whole story — financing costs can turn a decent cap rate into negative cash flow if the mortgage rate is high or the down payment is small.
For investors using a mortgage, cash-on-cash return is often the more practical metric. It compares annual cash flow to the cash invested (down payment + upfront closing costs). Cash-on-cash answers the question: “How hard is my cash working each year?” This metric is sensitive to vacancy, repairs, and management fees, so planning reserves matter. If you ignore CapEx and maintenance, you may overestimate returns — especially on older properties.
Vacancy is another major driver. Even a small vacancy assumption can materially reduce effective rent. In Canada, rental markets can be tight, but turnover, unpaid rent, and re-listing time still happen. Use a vacancy rate that matches your area and property type. If you have multiple units, vacancy risk may diversify, but maintenance and management complexity can rise.
Over a holding period, ROI depends heavily on your assumptions about rent growth and appreciation. These are uncertain and can vary by city, neighborhood, and interest-rate cycles. This calculator uses simple annual growth as a planning approach and estimates selling costs as a percentage of sale price. It does not model income tax, CCA strategy, refinancing, or detailed lease structures — those are important for final decisions, but a clean planning model helps you compare scenarios quickly.