Use this free online investment property mortgage calculator to estimate your monthly mortgage payment and rental cash flow in Canadian dollars (CAD). Enter the property price, down payment, interest rate, amortization period, expected monthly rent, and other monthly expenses to see whether your projected rental income covers the estimated costs.
How to Use This Investment Property Calculator
Start with the property’s purchase price and the down payment you expect to make. Enter your annual mortgage interest rate and amortization period, then add the monthly rent you reasonably expect to collect and your estimated monthly expenses. The calculator estimates the mortgage payment, total monthly costs, and cash flow remaining after those costs.
How Is Rental Property Cash Flow Calculated?
Rental property cash flow is the difference between the rent collected and the monthly costs included in your estimate.
Formula:
Monthly cash flow = Monthly rent − Monthly mortgage payment − Other monthly expenses
For example, if a rental property generates $2,500 in monthly rent, has an estimated mortgage payment of $2,600, and incurs $500 in other monthly expenses, the estimated cash flow is negative $600 per month. You would need other funds to cover that shortfall.
What Expenses Should Canadian Property Investors Consider?
Your result is only as complete as the expenses you enter. Depending on the property, costs may include municipal property taxes, insurance, repairs, maintenance, utilities paid by the owner, property management, condo fees, and periods without a tenant. Include these in your monthly expense estimate where applicable.
The calculator does not automatically add these costs, and it does not account for closing costs, income tax, changes in rent, or unexpected repairs. Review your property’s likely expenses before relying on the estimate.
How Much Down Payment Do You Need?
The down payment affects the amount you borrow and therefore the estimated mortgage payment. Requirements can vary depending on the property, intended use, lender, and mortgage rules. Before purchasing a rental property, review investment property down payment requirements and understand how lenders assess rental property cash flow.
Understand Your Cash Flow and ROI Estimate
Positive monthly cash flow means the rent entered exceeds the mortgage payment and other expenses included in this calculator. Negative cash flow means the entered rent does not cover those costs.
Neither result alone establishes whether a property is a good investment, because appreciation, principal repayment, taxes, vacancies, transaction costs, and other factors also affect overall returns.
The displayed annual ROI is a simplified calculation based on estimated annual cash flow divided by the down payment. It is not a complete investment return calculation and may be misleading when the down payment is zero or when other acquisition costs are substantial.
Disclaimer: This calculator provides estimates for informational and educational purposes only, not financial, tax, legal, or professional advice. Results are based on the information entered and may differ from actual costs, payments, rates, fees, or eligibility. Verify details with the relevant lender, financial professional, or official source before making financial decisions.
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Disclaimer
MortgageRatesChecker provides educational mortgage calculators, loan tools, and financial guides designed to help you better understand home financing. Our content is researched, fact-checked, and regularly updated in accordance with our Editorial Policy, using trusted information from our Data Sources and transparent methodologies explained in How We Calculate. Learn more about our commitment to accuracy on Why Trust Us. This content is provided for informational purposes only and should not be considered financial, legal, tax, investment, or mortgage advice. Mortgage rates, lending requirements, loan programs, and regulations may change without notice. Before making any borrowing, refinancing, or home-buying decision, consult your Bank or Mortgage Lender, licensed financial advisor, tax professional, or attorney based on your individual circumstances. MortgageRatesChecker is an independent educational resource and is not a lender, mortgage broker, financial advisor, or government agency. Please review our Affiliate Disclosure, Advertiser Disclosure, Disclaimer, and Terms & Conditions for additional information.
