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Rental Property ROI Calculator Canada

Rental property ROI is not one number. A Canadian investor should check cap rate, cash flow, cash-on-cash return, DSCR, and break-even rent together before treating a deal as attractive.

Verified: 2026-07-29 · Author: Sunny

Analyze full rental ROI View methodology

Direct answer

The best first-pass rental ROI view in Canada combines cap rate, monthly cash flow, cash-on-cash return, DSCR, and break-even rent. A deal can show a reasonable cap rate but still fail DSCR or monthly cash flow after Canadian mortgage payments and vacancy are included.

Calculator

Enter your own numbers here, then use the examples and notes below to check the result.

Worked Canadian examples

Scenario	Result	Interpretation
$800k property, $3,000 rent	3.52% cap, 0.63 DSCR	Cap rate is positive, but financing creates negative monthly cash flow.
$600k property, $2,800 rent	4.22% cap, 0.76 DSCR	Better yield, but still below common debt-service comfort ranges.
$400k property, $2,200 rent	5.07% cap, 0.91 DSCR	Closest of the examples, though still below 1.0 DSCR.

Quick scenario checks

$800k property

3.52% cap, 0.63 DSCR

$3,000 rent does not cover the 5% financed scenario after expenses.

$600k property

4.22% cap, 0.76 DSCR

$2,800 rent is closer, but still below a common 1.25 DSCR benchmark.

$400k property

5.07% cap, 0.91 DSCR

$2,200 rent nearly breaks even before taxes and capital expenditures.

Rental ROI formulas

ROI view = cap rate + cash flow + cash-on-cash return + DSCR

Use cap rate for the property, cash-on-cash for your invested cash, cash flow for monthly carry, and DSCR for debt-service coverage.

Metric comparison

Metric	Formula	Use when
Cap rate	NOI / price	Property-level yield before financing.
Cash flow	NOI - payment	Monthly carry after financing.
Cash-on-cash	annual cash flow / cash invested	Investor return on deployed cash.
DSCR	NOI / payment	Financeability and lender margin.
Break-even rent	(payment + expenses) / occupied share	Rent required to stop the property losing cash.

How to use this page

Enter your amount, province, rate, or pay period in the calculator above.
Use the examples above to confirm the calculation type you need.
Adjust the inputs until they match your real scenario.
Use the source link below to verify the public rule behind the estimate.

Methodology notes

All calculations are pre-tax estimates and should be checked with a broker, accountant, or property manager before purchase.
The calculator excludes appreciation, sale costs, depreciation, and capital-gains tax because those depend on holding period and tax situation.
Use the reports below for Canadian comparison data, then replace every default with property-specific numbers.

Common mistakes

Using one ROI number to green-light a deal.
Treating rent growth or appreciation as guaranteed.
Ignoring mortgage qualification, replacement reserves, and property-specific operating costs.

Limitations

The ROI view is a screening model, not underwriting or tax advice.
It excludes tenant quality, lease terms, rent-control rules, financing conditions, and future sale assumptions.

Related calculators and guides

Rental investor calculator hubStart here to compare every rental metric in the cluster.Cap rate calculatorCompare properties before financing.DSCR calculatorCheck lender-style debt-service coverage.Break-even rent calculatorFind the rent needed to cover payments and operating costs.Cash-on-cash return calculatorMeasure return on the cash you actually invest.Break-even rent by province reportOriginal province comparison built from the mortgage engine.Canadian rental cash-flow reportCity comparison with derived cap rate, DSCR, and break-even rent.

Questions

What ROI metric matters most for a rental property?

Use more than one. Cap rate compares the asset, cash-on-cash return compares your cash, cash flow checks monthly carry, and DSCR checks whether financing is plausible.

Does this include Canadian tax treatment for rental income?

No. The calculator is a pre-tax property analysis. Rental income, deductible expenses, CCA, and capital gains depend on your tax situation.

Sources and verification

This page uses the shared usecos calculator engine, visible formulas, and the source links below. Verified on 2026-07-29.