MITEY INVESTOR GUIDE · CANADA

Rental cash flow calculator

What stays in your pocket after the rent comes in? Start with the income you can collect, then account for the costs of owning and financing the property.

Reviewed October 11, 2026 · Illustrative examples · CAD

From monthly rent to monthly cash flow

Scheduled rent is the rent at full occupancy. Vacancy reduces that income before operating costs are deducted. Property tax, insurance, utilities, condo fees, management and routine maintenance reduce net operating income (NOI).

Cash flow goes one step further: subtract a capital reserve, mortgage payments and any extra principal payments. Principal paydown builds equity, but it still uses cash today. A property can appreciate and remain cash-flow negative.

A worked example, in Canadian dollars

Illustration only, not a market estimate: assume $2,500 monthly rent, 5% vacancy, $3,600 annual property tax, $1,200 annual insurance, management at 8% of collected rent, maintenance at 5% of scheduled rent and a 3% capital reserve. Effective rent is $2,375 per month; operating costs are $715; NOI is $1,660; the reserve is $75.

That leaves $1,585 per month before financing. A $400,000 mortgage at a constant 5% nominal rate, compounded semi-annually over 25 years, costs about $2,326.42 per month. First-year cash flow is approximately −$741.42 per month. Replace every assumption with information for your property.

Use the stress test before committing

The combined downside case raises the modelled interest rate by two percentage points and reduces all rents by 10%. It recalculates the mortgage from the start and keeps your other inputs. This is a sensitivity comparison, not a lender qualification test or a forecast of renewal payments.

Try the assumptions with your own numbers.

Open the calculator

YOUR INVESTMENT WORKSPACE

Start with a property. See the whole picture.

CAD Canadian dollars

Try an exampleIllustrative inputs — replace with your property details.

01Purchase & financing

Purchase price

CAD

Down payment

Mortgage interest rate

Fixed nominal rate, compounded semi-annually. Held constant in projections.

Amortization

years

Holding period

years

Controls the sale year and projection length.

02Rental income

Enter scheduled monthly rent. Add expenses once for the whole property.

Unit 1

Unit 1 monthly rent

CAD

Include a secondary suite for unit 1

Suite income is included only when enabled. Confirm permitted use independently.

03Operating costs

Property tax / year

CAD

Insurance / year

CAD

Owner utilities / month

CAD

Condo fee / month

CAD

Other operating costs / month

CAD

Vacancy allowance

Of scheduled rent; reduces income before expenses.

Property management

Of collected rent after vacancy.

Routine maintenance

Of scheduled rent; included in NOI.

Capital reserve

Of scheduled rent; deducted from cash flow, separately from NOI.

04Closing & upfront costs

Legal fees

CAD

Inspection

CAD

Buyer agency fees

CAD

Initial renovations

CAD

Initial repairs

CAD

Other closing costs

CAD

Add applicable registration, lender, tax or other upfront charges.

05Growth & sale assumptions

Property value growth / year

Rent growth / year

Fixed expense growth / year

Percentage-based allowances grow with rent.

Selling costs

Of sale price; include commission and applicable taxes as appropriate.

Fixed sale costs

CAD

06Extra mortgage payments

Extra principal / month

CAD

Extra principal / year

CAD

Applied at year-end, subject to remaining balance.

One-time principal payment

CAD

One-time payment year

years

Prepayments reduce cash flow and mortgage balance. Lender limits and penalties are not modelled.

07Custom future property values

Optional end-of-year overrides. Later appreciation grows from the override.

YOUR FIRST-YEAR SNAPSHOTLive estimate

Monthly cash flow-$741.42After vacancy, costs, reserves & mortgage payments

Cash required$102,000Down payment + upfront costs

Cap rate3.98%Annual NOI ÷ purchase price

Cash-on-cash-8.72%Year-one cash flow ÷ upfront cash

Mortgage payment$2,326.42Monthly scheduled payment

Where the rent goes / month, year one

Scheduled rent$2,500.00

Vacancy allowance-$125.00

Operating costs-$715.00

Capital reserve-$75.00

Mortgage + extra principal-$2,326.42

Net cash flow-$741.42

This example needs about $741 per month beyond rent in year one.

Before tax · CAD · estimates, not approval or investment advice. See assumptions

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TEST THE DOWNSIDE

What if the numbers change?

A combined scenario with interest 2 percentage points higher and rent 10% lower. Other inputs stay the same.

Repriced from the start; not a lender qualification test.

Base monthly cash flow-$7415% mortgage interest

Stress monthly cash flow-$1,4157% mortgage interest

Compare the assumptions

First-year measure	Base	Stress
Scheduled monthly rent	$2,500.00	$2,250.00
Mortgage payment	$2,326.42	$2,801.66
Cash-on-cash	-8.72%	-16.65%

THE LONG VIEW

Your 25-year projection

How returns are calculated

Profit if sold$351,327After 25 years, sale costs & upfront cash

Cumulative ROI344.44%Total profit ÷ upfront cash invested

Annualized return (IRR)4.50%Uses year-end cash flow & final net sale

Property equity$641,216Final value minus mortgage balance

View cash flow, equity & sale details

Monthly cash flow over timeAnnual cash flow ÷ 12 · CAD

Reconcile the final sale

Estimated property value: $641,216.00
Outstanding mortgage: -$0.00
Selling costs: -$27,148.64
Net sale proceeds: $614,067.36
Cumulative cash flow: -$160,740.33
Upfront cash invested: -$102,000.00
Total profit if sold: $351,327.03

Mortgage paid off in month 300 (year 25). Reserves are treated as spent or unavailable and are not returned at sale.

End-of-year values · dollars rounded for display
Year	Property value	Mortgage balance	Annual NOI	Capital reserve	Mortgage + extras	Annual cash flow	Property equity	Net sale proceeds	Profit if sold	Cumulative ROI
1	$505,000	$391,691	$19,920	$900	$27,917	-$8,897	$113,309	$91,609	-$19,288	-18.91%
2	$510,050	$382,961	$20,119	$909	$27,917	-$8,707	$127,089	$105,187	-$14,417	-14.13%
3	$515,151	$373,790	$20,320	$918	$27,917	-$8,515	$141,361	$119,255	-$8,864	-8.69%
4	$520,302	$364,154	$20,524	$927	$27,917	-$8,321	$156,148	$133,836	-$2,603	-2.55%
5	$525,505	$354,030	$20,729	$937	$27,917	-$8,125	$171,475	$148,955	$4,391	4.30%
6	$530,760	$343,394	$20,936	$946	$27,917	-$7,927	$187,366	$164,636	$12,145	11.91%
7	$536,068	$332,219	$21,145	$955	$27,917	-$7,727	$203,849	$180,906	$20,688	20.28%
8	$541,428	$320,479	$21,357	$965	$27,917	-$7,525	$220,950	$197,793	$30,050	29.46%
9	$546,843	$308,144	$21,571	$975	$27,917	-$7,321	$238,699	$215,325	$40,261	39.47%
10	$552,311	$295,185	$21,786	$984	$27,917	-$7,115	$257,126	$233,534	$51,355	50.35%
11	$557,834	$281,569	$22,004	$994	$27,917	-$6,907	$276,265	$252,452	$63,365	62.12%
12	$563,413	$267,265	$22,224	$1,004	$27,917	-$6,697	$296,148	$272,111	$76,328	74.83%
13	$569,047	$252,236	$22,446	$1,014	$27,917	-$6,485	$316,811	$292,549	$90,281	88.51%
14	$574,737	$236,446	$22,671	$1,024	$27,917	-$6,271	$338,291	$313,801	$105,263	103.20%
15	$580,484	$219,857	$22,898	$1,035	$27,917	-$6,054	$360,627	$335,908	$121,315	118.94%
16	$586,289	$202,429	$23,127	$1,045	$27,917	-$5,835	$383,861	$358,909	$138,481	135.77%
17	$592,152	$184,118	$23,358	$1,055	$27,917	-$5,615	$408,035	$382,849	$156,806	153.73%
18	$598,074	$164,880	$23,591	$1,066	$27,917	-$5,392	$433,194	$407,771	$176,337	172.88%
19	$604,054	$144,668	$23,827	$1,077	$27,917	-$5,166	$459,387	$433,725	$197,124	193.26%
20	$610,095	$123,432	$24,066	$1,087	$27,917	-$4,939	$486,663	$460,759	$219,220	214.92%
21	$616,196	$101,122	$24,306	$1,098	$27,917	-$4,709	$515,074	$488,926	$242,678	237.92%
22	$622,358	$77,682	$24,549	$1,109	$27,917	-$4,477	$544,676	$518,281	$267,556	262.31%
23	$628,582	$53,056	$24,795	$1,120	$27,917	-$4,243	$575,526	$548,882	$293,914	288.15%
24	$634,867	$27,183	$25,043	$1,131	$27,917	-$4,006	$607,684	$580,790	$321,816	315.51%
25	$641,216	$0	$25,293	$1,143	$27,917	-$3,767	$641,216	$614,067	$351,327	344.44%

Useful estimates start with clear assumptions.

Monthly payments use Canadian fixed-rate, semi-annual compounding. The rate stays constant; actual mortgages renew. Taxes, mortgage insurance, lender eligibility and prepayment penalties are not automatically calculated. Growth rates and presets are assumptions. Read the methodology.

MITEY rental property analysis

All amounts in CAD · illustrative estimates before tax · 25-year holding period

Investment snapshot

Upfront cash required	$102,000.00
Initial mortgage	$400,000.00
Scheduled mortgage payment / month	$2,326.42
First-year monthly cash flow	-$741.42
First-year annual NOI	$19,920.00
Cap rate	3.98%
First-year cash-on-cash return	-8.72%
Final-year property equity	$641,216.00
Net sale proceeds	$614,067.36
Cumulative cash flow	-$160,740.33
Profit if sold (after upfront cash)	$351,327.03
Cumulative ROI	344.44%
Annualized return (annual IRR)	4.50%

Combined stress case

Interest rate +2 percentage points from the start; all rents −10%. Other assumptions unchanged. Not a lender qualification test.

Stress mortgage rate	7.00%
Stress first-year monthly cash flow	-$1,415.16
Stress first-year cash-on-cash return	-16.65%

Inputs

Purchase & financing

Purchase price	$500,000.00
Down payment	20 %
Mortgage interest rate	5 %
Amortization	25 years
Holding period	25 years

Operating costs

Property tax / year	$3,600.00
Insurance / year	$1,200.00
Owner utilities / month	$0.00
Condo fee / month	$0.00
Other operating costs / month	$0.00
Vacancy allowance	5 %
Property management	8 %
Routine maintenance	5 %
Capital reserve	3 %

Closing & upfront costs

Legal fees	$1,500.00
Inspection	$500.00
Buyer agency fees	$0.00
Initial renovations	$0.00
Initial repairs	$0.00
Other closing costs	$0.00

Growth & sale assumptions

Property value growth / year	1 %
Rent growth / year	1 %
Fixed expense growth / year	1 %
Selling costs	4 %
Fixed sale costs	$1,500.00

Extra mortgage payments

Extra principal / month	$0.00
Extra principal / year	$0.00
One-time principal payment	$0.00
One-time payment year	1 years

Monthly rent by unit

Unit 1 main rent	$2,500.00
Unit 1 suite	Not included

Custom end-of-year property values

No overrides. Annual appreciation applies.

Year-by-year projection

Year	Value	Balance	NOI	Reserve	Debt service¹	Cash flow	Equity	Sale proceeds	Profit if sold	ROI
1	$505,000	$391,691	$19,920	$900	$27,917	-$8,897	$113,309	$91,609	-$19,288	-18.91%
2	$510,050	$382,961	$20,119	$909	$27,917	-$8,707	$127,089	$105,187	-$14,417	-14.13%
3	$515,151	$373,790	$20,320	$918	$27,917	-$8,515	$141,361	$119,255	-$8,864	-8.69%
4	$520,302	$364,154	$20,524	$927	$27,917	-$8,321	$156,148	$133,836	-$2,603	-2.55%
5	$525,505	$354,030	$20,729	$937	$27,917	-$8,125	$171,475	$148,955	$4,391	4.30%
6	$530,760	$343,394	$20,936	$946	$27,917	-$7,927	$187,366	$164,636	$12,145	11.91%
7	$536,068	$332,219	$21,145	$955	$27,917	-$7,727	$203,849	$180,906	$20,688	20.28%
8	$541,428	$320,479	$21,357	$965	$27,917	-$7,525	$220,950	$197,793	$30,050	29.46%
9	$546,843	$308,144	$21,571	$975	$27,917	-$7,321	$238,699	$215,325	$40,261	39.47%
10	$552,311	$295,185	$21,786	$984	$27,917	-$7,115	$257,126	$233,534	$51,355	50.35%
11	$557,834	$281,569	$22,004	$994	$27,917	-$6,907	$276,265	$252,452	$63,365	62.12%
12	$563,413	$267,265	$22,224	$1,004	$27,917	-$6,697	$296,148	$272,111	$76,328	74.83%
13	$569,047	$252,236	$22,446	$1,014	$27,917	-$6,485	$316,811	$292,549	$90,281	88.51%
14	$574,737	$236,446	$22,671	$1,024	$27,917	-$6,271	$338,291	$313,801	$105,263	103.20%
15	$580,484	$219,857	$22,898	$1,035	$27,917	-$6,054	$360,627	$335,908	$121,315	118.94%
16	$586,289	$202,429	$23,127	$1,045	$27,917	-$5,835	$383,861	$358,909	$138,481	135.77%
17	$592,152	$184,118	$23,358	$1,055	$27,917	-$5,615	$408,035	$382,849	$156,806	153.73%
18	$598,074	$164,880	$23,591	$1,066	$27,917	-$5,392	$433,194	$407,771	$176,337	172.88%
19	$604,054	$144,668	$23,827	$1,077	$27,917	-$5,166	$459,387	$433,725	$197,124	193.26%
20	$610,095	$123,432	$24,066	$1,087	$27,917	-$4,939	$486,663	$460,759	$219,220	214.92%
21	$616,196	$101,122	$24,306	$1,098	$27,917	-$4,709	$515,074	$488,926	$242,678	237.92%
22	$622,358	$77,682	$24,549	$1,109	$27,917	-$4,477	$544,676	$518,281	$267,556	262.31%
23	$628,582	$53,056	$24,795	$1,120	$27,917	-$4,243	$575,526	$548,882	$293,914	288.15%
24	$634,867	$27,183	$25,043	$1,131	$27,917	-$4,006	$607,684	$580,790	$321,816	315.51%
25	$641,216	$0	$25,293	$1,143	$27,917	-$3,767	$641,216	$614,067	$351,327	344.44%

¹ Includes scheduled payments and extra principal. Table dollars are rounded for display; calculations use full precision.

Assumptions and methodology

Monthly mortgage interest uses r = (1 + j/2)^(1/6) − 1. Payments stop at payoff. The rate is held constant; real mortgages renew. Vacancy reduces rent; management uses collected rent, maintenance and capital reserve use scheduled rent. Fixed costs grow at the expense growth rate; percentage-based costs grow with rent.

NOI excludes financing and capital reserves. Cash flow deducts both, including extra principal. Cash required includes all entered upfront costs. Equity excludes accumulated cash flow. Net sale proceeds deduct mortgage balance and entered selling costs. Profit adds cumulative cash flow and subtracts upfront cash. Cumulative ROI divides profit by upfront cash; annual IRR uses year-end cash flows and final sale proceeds. N/A means an undefined denominator or no unique conventional IRR.

Reserves are cash outflows and are not returned at sale. Custom values override year-end property values; later appreciation starts from the override. Inputs and presets are user assumptions, not market forecasts or offers.

Income and capital gains taxes, CCA, GST/HST, mortgage insurance premiums, loan eligibility, registration and lender charges, prepayment limits/penalties and special assessments are not automatically calculated. Add applicable known costs to the relevant input and seek qualified advice.

Methodology: https://rentalanalysiscalculator.com/calculation-methodology/
Reviewed October 11, 2026 · Part of The MITEY Network · hello@mitey.ca

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