Tool · Profitability
Rental Property Profitability Calculator
In brief — Enter the price, rents and expenses: the tool computes the cap rate, cash flow, cash-on-cash return and gross rent multiplier. A vacancy and maintenance allowance is applied for a realistic return.
Indicative estimate — not financial advice. Closing costs assumed at $4,000.
The tool produces the four core rental metrics — cap rate, annual cash flow, cash-on-cash return and gross rent multiplier (GRM) — with a vacancy and maintenance allowance to stay realistic.
What each metric measures and how to read it for your market is covered in the cap rate guide below. The clear verdict (buy, negotiate, walk away), the maximum recommended price and the after-tax analysis are in DeedWorth.
Read the full guide: Cap rate for Canadian rentals →
Your full analysis with DeedWorth
- Clear verdict: buy, negotiate or walk away
- Maximum recommended price for your return target
- After-tax analysis (CCA, recapture)
- 10-year projection and scenarios
Frequently asked questions
What is a good cap rate?
It depends on the market and risk: a cap rate is always compared to similar properties in the same area. DeedWorth benchmarks yours and delivers a full verdict with a free account.
How is cash flow calculated?
The tool computes it for you from rent, expenses and financing. If positive, the property covers its costs after debt service. The detailed definition is in the cap rate guide and the glossary.
What vacancy allowance should I use?
The tool applies an adjustable allowance. The right level depends on the local rental market and property type; the cap rate guide explains how to calibrate it.
What is cash-on-cash return?
It is the return measured on the money you actually invested, not on the full property price. The complete definition is in the glossary.