Property Calculator
Enter your assumptions and see the numbers update as you type. Then stress-test them — the useful question is not whether the base case works, but how much has to go wrong before it stops working.
One rental property: cash flow, cap rate, break-even and stress testing.
Your figures will be saved in this browser as you type.
ESTIMATED MONTHLY CASH FLOW
+$5,817 per year
Every figure here is a scenario — it follows from the assumptions you entered, not from observed market data.
PURCHASE & FINANCING
- Purchase price
- $450,000
- Down payment (20.0%)
- $90,000
- Mortgage amount
- $360,000
- Closing costs
- $9,000
- Total cash to close
- $99,000
- Monthly payment (P&I)
- $2,145.30
- Interest, first payment
- $1,558.04
- Principal, first payment
- $587.26
Loan-to-value 80.0%. Canadian payments compound semi-annually, so the monthly interest is slightly below the annual rate divided by twelve.
- Gross rent multiplier (11.2% gross yield)
- 8.9x
- Operating expense ratio
- 35%
The multiplier is price over gross annual rent, so vacancy does not move it. It ignores expenses entirely — a low multiplier can mean a property that is costly to run rather than cheap to buy, and it is not comparable between provinces with different property taxes.
The expense ratio is measured against effective income and includes management and the capital expenditure reserve. A listing quoting a ratio without those will always look better.
Where the money goes
- Gross rent
- $4,200.00
- Less vacancy (4%)
- −$168.00
- Effective income
- $4,032.00
- Property tax
- −$350.00
- Insurance
- −$150.00
- Maintenance
- −$250.00
- Utilities
- −$200.00
- Property management
- −$241.92
- Capital expenditure reserve
- −$210.00
- Mortgage payment
- −$2,145.30
- Monthly cash flow
- +$484.78
Net operating income is $31,561 a year. NOI excludes the mortgage on purpose — that is what makes cap rate comparable between buyers who financed differently.
Investment profile
Worth further analysis
Rules of thumb, not market benchmarks: expenses below 30% of collected rent usually mean something was left out; 30–50% is the usual range. A multiplier under 12x is low relative to rent and over 18x is high. Once local sale-price data is available these should be judged against it instead.
This describes what your numbers show. It is not a recommendation, and the decision remains yours.
Break-even
13% below your assumed rent
Below this the property costs you money each month.
What if?
The point is not the base case — it is how much has to go wrong before this stops working.
These calculations are educational decision-support, not investment or mortgage advice. Verify every assumption — particularly rent, vacancy and property tax — against local market data before relying on any of it.