Landlord ROI Calculator — Central Rentals Canada
Free landlord tool

Landlord ROI Calculator for Canadian rental properties

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Calculate cap rate, cash-on-cash return, and 5-year ROI on any Canadian rental property in 60 seconds. Built by the team behind Central Rentals Canada — the smart tenant screening and automated rent roll reconciliation platform trusted by landlords across Canada.

Direct answer

Divide the annual net operating income by the total cash invested (down payment + closing costs) and multiply by 100. In Canada in 2026, a healthy rental ROI is 5-8% cash-on-cash, with a cap rate of 4-6% for major cities and 6-8% for secondary markets.

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Central Rentals Editorial Team· Canadian rental market research desk
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Your inputs

Enter your numbers below — every field is required. We use Canadian market averages for taxes, insurance, maintenance and vacancy so you get an accurate ROI without a spreadsheet.

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Typical Canadian down payment: 5% – 25%
Canadian market defaults applied
Property tax 1.0%/yr · Landlord insurance 0.35%/yr · Maintenance reserve 8% of gross rent · Vacancy 3% (CMHC 2024) · Home appreciation 3%/yr (long-run CA average).
Add: purchase price, down payment %, mortgage rate, amortization, monthly rent

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Fill in purchase price, down payment %, mortgage rate, amortization, and monthly rent. We apply Canadian market averages for the rest.

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Direct answer

How do you calculate ROI on a Canadian rental property?

Return on Investment (ROI) on a Canadian rental property is calculated using three metrics: cap rate (Net Operating Income ÷ purchase price × 100), cash-on-cash return (annual cash flow ÷ total cash invested × 100), and total return (cash flow + property appreciation ÷ cash invested × 100). Central Rentals Canada’s free calculator above computes all three in real time with your inputs.

Direct answer

What’s a good cap rate for Canadian rentals in 2026?

A “good” cap rate for a Canadian rental in 2026 depends on the market: Toronto and Vancouver core condos typically show 3-4%, while secondary Ontario cities (Windsor, Kingston, Kitchener-Waterloo) and most of Alberta and Saskatchewan show 5-7%. A cap rate below the 5-year GoC bond yield generally means the investment is speculative — you’re betting on appreciation more than income.