Landlord Tools
Rental Property ROI Calculator Canada — Total Return Analysis
Calculate the total return on a Canadian rental property including cash flow, mortgage paydown, and appreciation. See annualized ROI over your investment horizon.
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Mortgage & Growth
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Frequently Asked Questions
What is the total return on a rental property in Canada?+
Total return on a Canadian rental property includes three components: annual cash flow (rent minus all expenses including mortgage), mortgage paydown (the principal reduction each month that builds equity), and property appreciation. Summing all three over your holding period gives your total return on invested capital.
What is a good ROI for a rental property in Canada?+
A total annualized ROI of 8–12% is generally considered solid for a Canadian rental property when factoring in cash flow, equity buildup, and appreciation. Pure cash flow returns are often lower (3–6%) in expensive markets, with appreciation and leverage driving the higher total return.
How does leverage affect rental property ROI?+
Leverage amplifies returns. If a property appreciates 5% but you only put 20% down, your return on that invested capital is 25% from appreciation alone (5% × 5× leverage). However, leverage also amplifies losses, so it's important to ensure the property cash-flows even in a flat or declining market.
Does this calculation include income tax on rental income?+
No — rental income is taxable in Canada at your marginal rate, and capital gains tax applies when you sell. This calculator shows pre-tax returns. Consult a tax professional to model your after-tax returns, especially if the rental income pushes you into a higher bracket.