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Direct answer: a Canadian rental property ROI calculator screens a property with monthly cash flow, annual net operating income, cap rate, cash-on-cash return and DSCR. A deal can show positive NOI but still lose cash after financing, so the metrics need to be read together.
Enter purchase price, down payment, interest rate, rent, operating expenses and vacancy to test a rental before making an offer. The result is a pre-tax planning estimate, not lender approval, tax advice or a full appraisal.
Verified: 2026-07-29 · Author: usecos.app Research & Engineering
Cash flow, cap rate, cash-on-cash return, and DSCR for Canadian rentals
Direct answer
For a $800,000.00 property with $200,000.00 (25.0%) down and $3,000.00/mo rent: The property generates $28,200.00 annual NOI, screens at a 3.52% cap rate, 0.67 DSCR, and produces $-1,139.63/mo pre-tax cash flow (-6.8% Cash-on-Cash ROI).
Jump to the calculator ↓MONTHLY CASH FLOW
$-1,139.63/mo
CAP RATE (UNLEVERAGED)
3.52%
CASH-ON-CASH ROI
-6.8%
DSCR (DEBT COVERAGE)
0.67
DSCR Screening Result: 0.67x
The simplified NOI does not cover mortgage debt service. Increase down payment, negotiate price, or increase rental income before submitting for financing.
Direct answer: with a $800,000.00 purchase price, 25.0% down, $3,000.00 rent, 5.0% vacancy and $500.00 monthly operating expenses, this property screens at 3.52% cap rate, 0.67 DSCR and -6.8% cash-on-cash return before tax.
Loan amount
$600,000.00
Annual NOI
$28,200.00
Annual debt service
$41,875.56
Break-even gross rent
$4,199.61/mo
Rent for 1.25 DSCR screen
$5,117.93/mo
Annual pre-tax cash flow
$-13,675.56
| Metric | Formula | How to use it |
|---|---|---|
| Effective rent | Monthly rent x (1 - vacancy rate) | Turns gross rent into expected occupied rent. |
| NOI | Effective rent x 12 - operating expenses x 12 | Measures property income before financing. |
| Cap rate | Annual NOI / purchase price | Compares property yield before debt service. |
| Cash flow | Effective rent - mortgage payment - operating expenses | Shows monthly pre-tax carrying result. |
| Cash-on-cash return | Annual cash flow / down payment | Compares cash flow with cash invested. |
| DSCR | Annual NOI / annual mortgage payments | Screens debt-service coverage before lender overlays. |
Canadian real estate markets split sharply between cash-flow markets (Prairies, Atlantic) and equity/appreciation markets (GTA, Metro Vancouver). Compare strategic trade-offs before acquiring rental property:
| Strategy Profile | Typical Markets | Expected Cap Rate | Cash-on-Cash Return | Financing & DSCR Rule | Key Risks & CRA Rules |
|---|---|---|---|---|---|
| Cash-Flow Focused (Multi-Unit / Secondary) | Edmonton, Calgary, Winnipeg, Moncton, Windsor | 6.0% – 8.5% | 8% – 14%+ | DSCR > 1.25x easily met; qualifies under conventional 20% down rental sheets | Higher tenant turnover; economic dependence on regional commodity/resource cycles |
| Equity Appreciation (Core Metro Condos) | Downtown Toronto, Vancouver, Burnaby, Mississauga | 3.5% – 4.5% | -2% to +2% (Negative Carry) | Requires 25%–35% down to achieve DSCR break-even at 2026 rates | Special condo assessments; provincial rent-control caps (e.g. Ontario pre-Nov 2018 units) |
| BRRRR / Value-Add Duplex Conversion | Hamilton, London, Kitchener-Waterloo, Halifax | 5.5% – 7.5% post-reno | 12% – 20%+ (Infinite upon refi) | Commercial/private bridge loan during reno; refi to 80% LTV once tenanted | Municipal permit delays; renovation cost overruns; CRA residential flipping rules if sold < 365 days |
| CMHC MLI Select (5+ Units Purpose-Built) | Canada-Wide Urban Hubs | 4.8% – 6.2% | 10% – 18% | Up to 95% LTV; up to 50-year amortizations; DSCR threshold 1.10x | Must meet CMHC points for affordability, energy efficiency, or accessibility; 12-month CMHC underwriting queues |
The calculator is a pre-tax screening model. Replace default assumptions with property-specific rent, tax, insurance, vacancy, repairs and financing terms.
Interest rates shown on UseCOS tools come from Bank of Canada data and carry the date the Bank published them. Tax figures follow the Canada Revenue Agency's published rules for the tax year shown. Other benchmarks are drawn from OSFI and provincial regulators. Always confirm current figures at the official source.
UseCOS provides transparent educational estimates and math comparisons for personal planning. Tools do not guarantee lender approval, tax compliance, or specific mortgage terms.
For binding mortgage rate commitments, loan contracts, or official tax filings, please consult a licensed Canadian mortgage broker, CPA, or official lender representative.
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Methodology: the mortgage payment uses the same Canadian semi-annual compounding convention as the main mortgage calculator, then calculates effective rent after vacancy, NOI after operating expenses, cap rate before financing, pre-tax cash flow after debt service, cash-on-cash return against down payment, and DSCR as NOI divided by annual debt service.
Limitations: this calculator does not model income tax, CCA, repairs beyond the monthly expense assumption, condo special assessments, insurance underwriting, rent-control rules, municipal licensing, refinancing, appraisal gaps, lender overlays or sale proceeds. DSCR is a screening metric only; lender policies differ by product and borrower.
Privacy: calculations run in the browser. usecos does not require an account and does not store rental-property inputs on a usecos account.