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Property Cash Flow Calculator

Instantly calculate monthly cash flow, cap rate, and cash-on-cash return for any rental property. Know if a deal works before you make an offer.

What does the Property Cash Flow Calculator do for investors?The Property Cash Flow Calculator screens any 1–20 unit rental on monthly cash flow, cap rate, cash-on-cash, GRM, and DSCR. Enter price, rent, expenses, vacancy, and Canadian semi-annual financing to get an instant pass/fail before you make an offer.

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Amount: $100,000

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FAQQ & A

Cash Flow Calculator FAQ

Common questions about rental property cash flow analysis and investment metrics.

Cash Flow Basics

Cash flow is the money left over each month after collecting rent and paying all expenses — mortgage payment, property taxes, insurance, maintenance, and vacancy allowance. Positive cash flow means the property earns more than it costs. Negative cash flow means you're subsidizing the property out of pocket each month.
Many investors target at least $200–$300/month per door as a minimum threshold. However, what's 'good' depends on your market, down payment, and investment strategy. Some investors accept lower cash flow in high-appreciation markets, while others require strong cash flow to build passive income quickly.

Investment Metrics

Cap rate (capitalization rate) measures a property's return independent of financing. It's calculated as Net Operating Income / Purchase Price. A cap rate of 5–8% is typical for residential investment properties in Canada. Higher cap rates mean more income relative to the purchase price, but also often signal higher risk or lower-appreciation markets.
Cash-on-cash return measures your annual cash flow as a percentage of the cash you actually invested (your down payment and closing costs). It's the most investor-relevant metric because it shows what your invested capital earns annually. A cash-on-cash return of 6–10% is generally considered solid for Canadian rental properties.

Investment Metrics (Continued)

Vacancy rate is the percentage of time a property sits empty between tenants. The industry standard assumption is 5% (about 2.5 weeks/year). In tight rental markets you may see 2–3%, while slower markets may see 8–10%. Using a realistic vacancy rate prevents overestimating your actual income.

Improving Returns

To improve cash flow: increase rent to market rates, reduce vacancy through good property management, negotiate a lower purchase price, put down a larger down payment to reduce mortgage payments, or find a lower interest rate. Our mortgage specialists can help structure financing to maximize your cash flow.

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