Example result based on the prefilled values.
Rental Yield
5.76%
Monthly Rent
CA$1,200.00
Continue your plan
Useful next calculations
When to use this calculator
- Before buying, renting, refinancing, or reviewing a property investment.
- When you want to compare cash flow, yield, growth, and ownership costs side by side.
- When you need a fast estimate before speaking to an agent, lender, or adviser.
- When you are assessing whether a rental property still makes financial sense after a mortgage rate change.
- When you want to compare the total cost of renting against owning over a five- or ten-year horizon.
A realistic Canada planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Annual Rent (CA$)
CA$1,400
Property Value (CA$)
CA$500,000
After entering these figures, review rental yield and monthly rent together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Rental Yield
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Monthly Rent
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
This calculator produces two figures: gross rental yield and monthly rent. Gross yield is calculated by dividing annual rent by the property value and multiplying by 100. It is the headline figure used to compare properties quickly, but it does not account for running costs, void periods, or financing. A property with a higher gross yield is not necessarily more profitable once costs are deducted.
To build a complete picture, subtract letting agent fees (8–15%), an allowance for maintenance (often modelled at 1% of property value per year), landlord insurance, and an estimate for void periods (one month per year is a common assumption). The result is your net yield. For mortgaged properties, also model your Interest Coverage Ratio against current stress-test rates to confirm lender affordability. Always consider your personal tax position, particularly the Section 24 restriction on mortgage interest deductibility for individual landlords.
Official references
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
- Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.
Frequently asked
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