$800k property
$4,444/mo
With 20% down, 5% rate, $500 expenses, and 5% vacancy.
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Mortgage calculator
Break-even rent is the gross monthly rent a rental property needs before it stops losing cash. In Canada, mortgage payments should use semi-annual compounding, and province-specific property tax and closing costs can move the result.
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Canada mortgage planning estimate
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The calculator is pre-tax and does not model CCA, refinancing, capital expenditures, or eventual sale proceeds.
Break-even rent is the gross rent needed to cover mortgage payment, operating expenses, and vacancy. With a $800,000 purchase, 20% down, a 5% mortgage rate, $500 monthly expenses, and 5% vacancy, the break-even rent is about $4,444 per month.
Verified: 2026-07-29 · Author: usecos.app Research & Engineering
Use the canonical URL for this page when referencing these facts. Figures are planning estimates and should be checked against the cited official sources and the calculator inputs.
Enter your own numbers here, then use the examples and notes below to check the result.
Benchmark required break-even rents against current Canadian market reality across major urban archetypes (assumes 20% down, 25-yr amort, semi-annual compounding).
| Property Archetype | Purchase & 20% Down | P&I + Operating | Break-Even Rent | Market Rent & Gap | Strategic Verdict |
|---|---|---|---|---|---|
| Calgary Detached Rental4.0% vacancy buffer | $580,000 $116,000 (20%) | $2,710/mo +$620/mo ops | $3,469/moGross required | $3,350/mo -$119/mo | Near Break-Even Strong principal paydown (~$950/mo) offsets minor operating deficit. Qualifies easily with standard debt-service ratios. |
| Edmonton Multi-Suite5.0% vacancy buffer | $450,000 $90,000 (20%) | $2,103/mo +$710/mo ops | $2,961/moGross required | $3,200/mo +$239/mo | Cash-Flow Positive Immediate positive net operating income and healthy DSCR (1.18x+). Self-sustaining asset without out-of-pocket landlord subsidy. |
| GTA Suburban Condo3.0% vacancy buffer | $680,000 $136,000 (20%) | $3,178/mo +$890/mo ops | $4,194/moGross required | $2,750/mo -$1,444/mo | Capital Growth Play Severe cash drag at 20% down. Requires 35%+ down payment or reliance on personal income to service the negative monthly spread. |
| Montreal Plateau Duplex4.0% vacancy buffer | $820,000 $164,000 (20%) | $3,831/mo +$940/mo ops | $4,970/moGross required | $4,400/mo -$570/mo | Balanced Hybrid Dual revenue streams mitigate total vacancy risk. Principal paydown (~$1,340/mo) significantly exceeds net cash shortfall. |
Never deduct vacancy from expenses. A 5% vacancy rate requires dividing total expenses by 0.95 (1 - 0.05). If total carrying costs are $3,800/mo, your required gross rent is $4,000/mo ($3,800 ÷ 0.95), not $3,990 ($3,800 × 1.05).
A property with -$200/mo cash flow where the tenant pays down $900/mo in mortgage principal still generates $700/mo in net equity creation before tax and depreciation recapture.
| Scenario | Result | Interpretation |
|---|---|---|
| $800k property, 20% down | $4,444/mo break-even rent | A $3,000 rent assumption would still be materially cash-flow negative. |
| $600k property, 20% down | $3,518/mo break-even rent | $2,800 rent is closer, but not enough under these assumptions. |
| $400k property, 20% down | $2,380/mo break-even rent | $2,200 rent is close to break-even before tax and capital reserves. |
$4,444/mo
With 20% down, 5% rate, $500 expenses, and 5% vacancy.
$3,518/mo
With 20% down, 5% rate, $550 expenses, and 5% vacancy.
$2,380/mo
With 20% down, 5% rate, $400 expenses, and 5% vacancy.
Break-even rent = (mortgage payment + operating expenses) / (1 - vacancy rate)
Operating expenses should include property tax, insurance, maintenance, management, utilities paid by the landlord, and condo fees where applicable.
| Metric | Formula | Use when |
|---|---|---|
| Break-even rent | (payment + expenses) / occupied share | Find the rent needed for zero monthly cash flow. |
| Rent for target DSCR | (payment x target DSCR + expenses) / occupied share | Estimate the rent needed for lender comfort. |
| Cash flow | effective rent - payment - expenses | Measure monthly surplus or shortfall. |
No. Break-even rent is what your property needs based on your costs. Market rent is what tenants are willing to pay for a comparable unit.
Yes. If you expect 5% vacancy, the occupied months need to carry the empty period, so required gross rent is higher than payment plus expenses.
This page uses the shared usecos calculator engine, visible methodology, and the source links below. Verified on 2026-07-29.