Rental Cashflow
Investment property cashflow & cap rate.
Plug in your property, rent, and operating costs to model NOI, monthly cashflow, and cap rate. Use this for any rental, multi-unit, or BRRRR scenario.
Live math · no calculate button| Canadian semi-annual compounding · OSFI B-20| Ontario + Toronto LTT-aware| Same engine our advisors use
Your inputs
Monthly bleed
-$1,351
Cap rate 2.96%
Monthly mortgage (P+I)$3,375
Effective annual rent$39,576
Operating expenses$15,284
Net Operating Income (NOI)$24,292
Annual debt service$40,505
Take it with you
Download a neat PDF report with your numbers.
Lender-ready summary, your assumptions baked in, and a personalized note from a advisor at Mortgage Squad Advisors.
Methodology · Canadian-correct
Rule of thumb: positive cashflow + cap rate ≥ 5% in major Ontario markets is solid. Below 4% cap, lean on appreciation; above 6%, validate the rent assumption against market comps.
Mortgage glossary— terms that matter for this calculator
What's a good cap rate for a Canadian rental property?
Depends on the market. Most Ontario investors target <strong>4.5-6% cap</strong> on residential multifamily in major GTA markets. Outside the GTA, 6-8% is achievable. Commercial residential (5+ unit) under CMHC MLI Select can run 5-7% cap with much better lending terms.
How do lenders treat rental income on qualifying?
Three methods: (1) <strong>50% offset</strong> (most conservative, reduces your TDS denominator), (2) <strong>80% added to gross income</strong> (most A-lenders), or (3) <strong>100% offset</strong> (specialty + a handful of A-lenders — most powerful for scaling investors). The right lender for your file can change your qualifying by 20%+.
What is BRRRR and how does the math work?
Buy, Renovate, Rent, Refinance, Repeat. Buy under-market → renovate to force appreciation → rent at market → refinance at new appraised value to pull out the down-payment capital → repeat with the next property. The cashflow calculator above shows the NOI; the refi step needs our <a href="/mortgage-refinance-calculator">refinance calculator</a>.
Do I need 20% down on an investment property in Canada?
Non-owner-occupied 1-4 unit rentals: <strong>yes, 20% minimum</strong>. Owner-occupied duplex/triplex/fourplex where you live in one unit: as little as 5-10% via insurer multi-unit programs (house-hack strategy). On 5+ unit MLI Select: as low as 15% down with energy/affordability concessions stacked.
What expenses should I include in NOI?
Real operating expenses: property tax, insurance, utilities NOT paid by tenants, condo fees (if any), property management (typically 7-10% of gross rent), maintenance reserve (~5-10% of gross rent), vacancy allowance (~5%). Don't include the mortgage payment — cap rate is calculated before debt service, by definition.