Will this rental actually cash flow?
Run a 1 to 4 unit rental before you write the offer. Rent, vacancy, taxes, insurance, repairs and management go in. Monthly cash flow, cap rate, cash-on-cash return and your break-even rent come out.
Rough numbers only. This is a calculator for planning, not an approval or advice. Rates shown are examples you can change. Nothing you type is saved unless you choose to email it to yourself.
- Net operating income / year
- Mortgage payment / month
- Cap rate
- Cash-on-cash return
- Debt coverage (NOI / mortgage)
- Break-even rent / month
- Principal paid down in year 1
- Cash needed to close
Rough numbers for planning only. This isn't an approval, a quote, an offer or advice. Example rates are for the math and aren't rates we're offering. Your lender's policies, your credit and the property change the real answer.
Three steps.
Set the price and down payment
Most rentals you won't live in need 20% down. If you'll live in one of the units, toggle owner-occupied.
Be honest about expenses
Use real tax bills and insurance quotes if you have them. Leave room for vacancy, repairs and management, even if you'll self-manage at first.
Check break-even rent
If the rent you expect is barely above break-even, a vacancy or a repair can wipe out a year of cash flow.
Worth knowing.
Down payment rules
A non-owner-occupied rental generally needs 20% down. If you live in the property, CMHC allows 5% on the first $500,000 and 10% on the rest for 1 to 2 units, and 10% for 3 to 4 units, on homes under $1.5 million.
Cap rate vs cash-on-cash
Cap rate is the property's income before any mortgage, divided by the price. Cash-on-cash is your yearly cash flow divided by the cash you put in. One judges the building. The other judges your deal.
How lenders count rent
Lenders either add part of the rent to your income or subtract it from the property's costs, and the method changes how much you qualify for. That's a conversation worth having before you shop.
Good questions.
How much down payment do I need for a rental property in Ontario?
If you won't live there, plan on at least 20% down. If you'll live in one unit of a 2 to 4 unit home, insured minimums apply: 5% of the first $500,000 and 10% of the rest for 1 to 2 units, and 10% for 3 to 4 units, on properties under $1.5 million.
What's a good cap rate for a rental property?
There isn't one number. Cap rates depend on the city, the building and the market at the time. Use the cap rate to compare properties against each other, and use cash flow and cash-on-cash return to judge whether the deal works for you.
Should I include vacancy if the unit is already rented?
Yes. Tenants move and units sit empty during turnovers. A small vacancy allowance keeps your numbers honest across a full year.
Does this include the principal I pay down?
Cash flow doesn't, because principal is money you pay out each month. The tool shows first-year principal paydown separately, since it builds your equity even when cash flow is thin.
Want the real number?
These are rough numbers. I can run your actual file against real lender criteria, and checking your options won't touch your credit.
Keep running the numbers
Multi-unit and commercial
NOI, DSCR and the most a lender may lend on a 5+ unit, mixed-use or commercial property.
Open the tool Ontario closing cost estimatorClosing costs
Land transfer tax, rebates, legal, title insurance and the other costs you pay on closing day.
Open the tool Home equity checkHome equity check
How much of your equity you could access with a refinance or a HELOC, and what it could cost monthly.
Open the tool