Cash flow, cap rate, ROI, and DSCR analysis
Cap rate · DSCR · Cash-on-cash ROI
Methodology: OSFI B-20 · Canadian real estate underwriting standards
An investor ROI calculator evaluates rental property performance by analyzing cash flow, cap rate, cash-on-cash return, and DSCR — helping Canadian real estate investors decide if a property is worth buying.
Enter purchase price, down payment, rent, and expenses below to see if a property cash flows. Compare GST/HST rates by province. All calculations run locally — no data stored.
CASH FLOW
$-1,139.63/mo
CAP RATE
3.52%
COC ROI
-6.8%
DSCR
0.82
⚠️ May struggle to qualify
Below 1.0 — consider a larger down payment or higher rent
A good cap rate in Canada ranges from 4% to 8% — Toronto/Vancouver see 3-4%, while smaller cities may offer 6-8%.
A good cap rate in Canada ranges from 4% to 8% depending on the city. Toronto and Vancouver typically see 3-4%, while smaller cities like Winnipeg or Edmonton may offer 6-8%. Higher cap rates mean better returns but often come with more risk or less appreciation potential.
DSCR = Net Operating Income divided by total debt payments. Most Canadian lenders require 1.0-1.25 for rental financing.
DSCR = Net Operating Income / Total Debt Payments. A DSCR of 1.25 means your property generates 25% more income than needed to cover the mortgage. Most Canadian lenders require a DSCR of 1.0-1.25 for rental property financing.
Cash-on-cash ROI = Annual Cash Flow / Down Payment. If you invest $100K and earn $8K/year, your CoC is 8%.
Cash-on-cash ROI = Annual Cash Flow / Down Payment x 100. It measures the actual return on your invested cash. If you put $100,000 down and make $8,000/year cash flow, your CoC is 8%. This is the key metric for comparing investment properties.
Include property tax, insurance, maintenance (1-2% of value), property management (8-12% of rent), and vacancy (5-10%).
Include property tax, insurance, maintenance (1-2% of value/year), property management (8-12% of rent), utilities, and vacancy allowance (5-10%). Total operating expenses typically run 30-50% of gross rental income for Canadian properties.