Investment Calculator
Investment Property Calculator
Canadian dollar cash flow, net operating income, capitalization rate, cash-on-cash return, debt service coverage ratio, closing-day cash required, and five and ten year projections.
Inputs
Purchase price
The agreed purchase price before down payment. Used for mortgage calculations, capitalization rate, and projections.
$
Down payment percent
Percent of the purchase price paid in cash. Higher down payment reduces the mortgage amount and monthly payment.
%
Interest rate percent
Annual mortgage interest rate. This drives your monthly mortgage payment and impacts cash flow and debt service coverage ratio.
%
Amortization period in years
Total repayment length used to calculate the mortgage payment. Longer amortization reduces the payment but increases total interest over time.
years
Monthly rental income
Expected gross rent collected monthly. Vacancy allowance is applied to estimate effective gross income.
$
Other monthly income
Additional income such as parking, laundry, storage, or other fees. Added to gross income before vacancy.
$
Vacancy allowance percent
Percentage of gross income set aside for vacancy and downtime. Higher vacancy lowers effective gross income.
%
Property taxes per year
Annual municipal property taxes. Included in operating expenses and increases with projections.
$
Insurance per year
Annual property insurance cost. Included in operating expenses and increases with projections.
$
Condominium fees per month
Monthly condominium fees paid by the owner. Only applicable for condominium properties.
$
Utilities paid by owner per month
Monthly utilities paid by the owner instead of tenants. Included in operating expenses.
$
Other operating expenses per month
Any additional recurring costs such as snow removal, lawn care, common area supplies, or subscriptions.
$
Property management percent of effective gross income
Percentage charged by a property manager based on effective gross income after vacancy.
%
Maintenance reserve percent of effective gross income
Reserve for routine maintenance and repairs. Calculated as a percent of effective gross income.
%
Capital expenditure reserve percent of effective gross income
Reserve for major items like roof, windows, HVAC, and appliances. Calculated as a percent of effective gross income.
%
Lawyer fee estimate one time
Estimated legal fees and typical disbursements. Used in closing-day cash required and cash-on-cash return.
$
Repairs and renovations one time
One-time improvements after purchase. Included in your cash invested and total cash required.
$
Capitalization rate calculation option
Targets
Minimum monthly cash flow
Your minimum acceptable monthly cash flow after all operating expenses and mortgage payment.
$
Minimum cash-on-cash return percent
Annual cash flow divided by total cash invested. Many investors use this to compare deals.
%
Minimum debt service coverage ratio
Net operating income divided by annual debt service. Lenders often prefer values above 1.20.
ratio
Sensitivity testing
Interest rate increase percent
Models how cash flow changes if your mortgage rate increases by this amount at renewal.
%
Monthly rental income decrease
Models cash flow if rents are lower than expected or decline due to market conditions.
$
Projection assumptions
Annual increase percent for projections
Applied to property value appreciation, rental income growth, and operating expense inflation in the five and ten year projection.
%
Selling costs percent
Percentage deducted from projected sale price for selling costs such as commission and fees.
%
Annual increase percent is applied to property value appreciation, rental income growth, and operating expense inflation in the five and ten year projection.
Results
Monthly cash flow
$0
Annual $0
Capitalization rate
0%
Based on net operating income
Cash-on-cash return
0%
Cash invested $0
Debt service coverage ratio
0.00
Annual debt service $0
Monthly mortgage payment
$0
Loan amount $0
Monthly operating expenses
$0
Effective gross income $0 per month
Annual net operating income
$0
Net operating income excludes mortgage payment
Annual net income after financing
$0
Net income after financing includes mortgage payment
Borderline
Adjust the purchase price, rental income, or financing to meet your targets.
Sensitivity testing
Monthly cash flow if interest rate increases by 1 percent$0
Monthly cash flow if monthly rental income decreases by $200$0
Closing-day cash required estimate
Down payment$0
Ontario land transfer tax$0
Lawyer fee estimate one time$0
Repairs and renovations one time$0
Total cash required$0
Five and ten year projection
Five year total cash flow$0
Five year net sale proceeds$0
Five year total profit$0
Five year return on cash invested0%
Ten year total cash flow$0
Ten year net sale proceeds$0
Ten year total profit$0
Ten year return on cash invested0%