Investor toolsRental Cash-Flow Calculator
Does the property pay for itself? Enter the price, rent, and costs to see your monthly cash flow plus the cap rate, cash-on-cash return, and DSCR that real investors use.
Your numbers
Estimated cash flow after all expenses and the mortgage. That is -$24,896 a year, so the property runs at a shortfall at these numbers.
Monthly breakdown
- Rent
- $3,200
- Vacancy allowance (4%)
- -$128
- Property tax
- -$400
- Condo / maintenance fees
- -$500
- Insurance
- -$125
- Property management (8%)
- -$246
- Maintenance reserve (5%)
- -$154
- Mortgage payment
- -$3,722
- Monthly cash flow
- -$2,075
What the metrics mean
Cap rateis the property’s annual net operating income divided by its price, so you can compare deals side by side without financing in the picture.
Cash-on-cash return is your annual cash flow divided by the cash you put in (down payment plus closing costs). It is the return on the money actually out of your pocket.
DSCR is net operating income divided by the mortgage payments. Lenders like to see it above about 1.2, meaning the rent comfortably covers the loan.
Looking at an investment property?
Team Asgarian works with investors across the GTA. We will help you find properties that actually cash-flow and run the numbers with you before you buy.
Estimates only, not investment or financial advice. The mortgage payment uses Canadian semi-annual compounding. Rent, vacancy, expenses, and rates vary by property and market, and this tool does not include income tax on rental profit or future appreciation. Confirm every number before you invest.
How the numbers work
What is cap rate?
Cap rate is the property's annual net operating income divided by its purchase price. Net operating income is the rent you actually collect minus operating expenses, before any mortgage. Because it leaves financing out, cap rate lets you compare two very different properties on the same footing. A higher cap rate means more income for the price.
What is cash-on-cash return?
Cash-on-cash return is your annual cash flow divided by the cash you actually put in, which is your down payment plus closing costs. It answers a simple question: for every dollar you invested, how much comes back each year. Unlike cap rate, it does account for your mortgage, so it reflects your real return as the owner.
What is DSCR and why do lenders care?
DSCR, the debt service coverage ratio, is net operating income divided by the mortgage payments. A DSCR of 1.0 means the rent exactly covers the loan. Lenders generally want to see about 1.2 or higher, meaning the property earns comfortably more than the mortgage costs. It is one of the first numbers a lender checks on an investment property.
What counts as an operating expense?
Operating expenses are the ongoing costs of running the property: property tax, condo or maintenance fees, insurance, property management, a maintenance reserve for repairs, and any utilities you pay as the landlord. They do not include the mortgage payment, which is financing, or one-time purchase costs. This calculator keeps them separate so your cap rate and cash flow are both correct.
Ready to build your portfolio?
Talk to Team Asgarian. We work with GTA investors to find properties that actually cash-flow, and we run every number with you before you buy.
Let's Connect