Canadian Rental Yield Calculator

Calculate gross yield, net yield (cap rate), and monthly cash flow for Canadian investment properties. Includes condo fees, property tax, and mortgage payments in CAD.

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Monthly Cash Flow
-CA$2,104
After mortgage, tax, fees, and expenses
Gross Yield
5.17%
Net Yield / Cap Rate
1.75%
Cash-on-Cash Return
-19.42%
Effective Annual Rent
CA$31,920
Annual Expenses
CA$20,554
Net Operating Income
CA$11,366
Annual Mortgage
CA$36,613
Down Payment
CA$130,000

How to Use the Canadian Rental Yield Calculator

Enter the Property Value and Monthly Rent, then adjust expenses to match your target property. The calculator computes gross yield, net yield (cap rate), and monthly cash flow — the most important metrics for Canadian real estate investing.

For condominiums, be sure to include monthly condo fees. For freehold properties, include a realistic maintenance budget (1–2% of property value annually).

Key Formulas

Gross Yield = Annual Rent / Property Value × 100

Effective Rent = Annual Rent × (1 - Vacancy Rate)
Annual Expenses = Tax + Condo Fees + Insurance + Maintenance + Management
Net Operating Income (NOI) = Effective Rent - Expenses
Net Yield / Cap Rate = NOI / Property Value × 100

Monthly Cash Flow = (NOI - Annual Mortgage) / 12
Cash-on-Cash Return = (NOI - Annual Mortgage) / Down Payment × 100

Example: Toronto Condo Investment

1-Bedroom in North York

Purchase Price$680,000
Monthly Rent$2,700
Gross Yield4.76%
Property Tax (annual)$4,800
Condo Fees (monthly)$650
Insurance$1,500/yr
Maintenance (1%)$6,800/yr
Management (0% self-managed)$0
Net Operating Income$10,700/yr
Net Yield1.57%
Mortgage (20% down, 5.09%, 25yr)$3,131/mo
Monthly Cash Flow-$2,240

Toronto condos typically generate negative cash flow at current prices and rates. Many investors rely on long-term appreciation rather than yield. Investors looking for cash flow typically look to smaller cities like Hamilton, London, or Windsor, ON.

Frequently Asked Questions

Gross yields in major Canadian markets (Toronto, Vancouver) typically range from 3–5%. Net yields (cap rates) are often 1.5–3% — challenging for cash flow at current mortgage rates. More affordable markets (Edmonton, Winnipeg, small Ontario cities) can produce 5–8% gross yields and positive cash flow. A cash-on-cash return above 5% is generally considered acceptable.
Rental income is added to your regular income and taxed at your marginal rate. You can deduct mortgage interest (not principal), property tax, insurance, maintenance, condo fees, management fees, and CCA (capital cost allowance/depreciation). When you sell, 50% of capital gains are included in taxable income. Consult a CPA for landlord-specific tax strategies.
Yes. Investment properties in Canada require a minimum 20% down payment. CMHC insurance is not available for pure investment properties. For owner-occupied properties with a rental suite, insured financing may be available with as little as 5% down.

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