Rental Deal Analyzer

Test whether a property cash flows, what the rent says it is really worth, and whether your down payment would grow faster in the market. Every figure recalculates as you type, and none of it leaves your browser.

Calculator

Does it cash flow, what is it really worth, and would the down payment grow faster invested?

Property

Purchase price ($)

Down payment (%)

Non-owner-occupied rentals generally need at least 20%.

Closing costs (%)

Land transfer tax, legal, inspection.

Monthly rent ($)

Monthly condo fee ($)

0 if there is none.

Financing

Mortgage rate (%)

Amortization (yrs)

Operating expenses

Property tax (%)

Of the purchase price, per year. Varies widely by municipality.

Insurance, per year ($)

Maintenance (%)

Of gross rent.

Vacancy allowance (%)

Of gross rent.

Management (%)

Of gross rent. Keep it in even if you self-manage — your time has a price.

Invest instead?

Starting amount

$103,500

Down payment plus closing costs.

Assumed return

An assumption, not a forecast. Real returns vary year to year and can be negative.

Growth

Property appreciation, per year (%)

Comparison horizon (yrs)

Extra monthly saving ($)

Invested on both sides — you would have it either way.

Your figures will be saved in this browser as you type.

Key metrics

Measured against a 5% cap rate and a 1.20 debt service coverage ratio.

Fails both screens

Net operating income, per year: $18,900
Cap rate: 4.20%Below 5%
Debt service coverage (DSCR): 0.75Income does not cover debt
Monthly cash flow: −$519You top it up
Break-even rent: $3,133/moRent is $633 short
Highest price that clears both screens: $303,893$146,107 above it

Mortgage payment $2,094 a month on a $360,000 loan. Canadian fixed-rate mortgages compound semi-annually, so this is slightly lower than a US calculator would show.

At a 5% cap rate this rent supports a price of $378,000. The asking price is $72,000 above that.

Operating expenses, per year

Annual operating expenses by category
Gross scheduled rent	$30,000
Property tax (1% of price)	−$4,500
Insurance	−$1,200
Maintenance (5% of rent)	−$1,500
Vacancy allowance (5% of rent)	−$1,500
Management (8% of rent)	−$2,400
Condo fees	$0
Total operating expenses	−$11,100
Net operating income	$18,900

NOI excludes the mortgage on purpose, which is what makes the cap rate describe the property rather than your financing.

Buy the property, or invest the cash — 10 years

After 10 years, buying leaves you $400,444 and investing leaves you $372,138 — $28,306 in favour of buying, before selling costs and tax.

Buy is your equity in the property, plus any monthly surplus and extra saving reinvested at the assumed return.

Invest starts with your down payment and closing costs. The property needs $519 a month from your pocket, so that same amount is invested here instead.

Not included: selling costs and realtor commission, capital gains tax, rent and expense growth, and the tax treatment of whichever account the investment sits in. Each can move the result by more than the gap shown.

Year by year

Year-by-year property value, mortgage balance, equity and the value of buying compared with investing
Year	Property value	Mortgage	Equity	Reinvested	Buy	Invest
1	$468,000	$352,522	$115,478	$0	$115,478	$120,356
2	$486,720	$344,665	$142,055	$0	$142,055	$138,897
3	$506,189	$336,411	$169,778	$0	$169,778	$159,293
4	$526,436	$327,738	$198,698	$0	$198,698	$181,728
5	$547,494	$318,627	$228,867	$0	$228,867	$206,406
6	$569,394	$309,054	$260,339	$0	$260,339	$233,553
7	$592,169	$298,997	$293,172	$0	$293,172	$263,414
8	$615,856	$288,431	$327,426	$0	$327,426	$296,261
9	$640,490	$277,329	$363,161	$0	$363,161	$332,393
10	$666,110	$265,666	$400,444	$0	$400,444	$372,138

Educational estimates, not investment or mortgage advice. For what drives rent in a particular city, see Explore Markets.