Mohammed MustafReal Estate Salesperson | HomeLife Miracle Realty Ltd., Brokerage
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Free tool

Investment Property Cap Rate & ROI Calculator

Run the numbers on a GTA rental before you offer: cap rate, monthly cash flow, cash-on-cash return, break-even rent and first-year total return including land transfer tax. Educational only, not investment, tax or legal advice.

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  • 100% FREE
  • ~4 min
  • For GTA rental property investors
  • Cap rate, cash flow, cash-on-cash & DSCR
  • Licensed Ontario REALTOR®

Property and financing

Enter the deal as you would underwrite it. Every field is editable.

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Investor questions about cap rate and ROI

What is a cap rate?
Capitalization rate is net operating income divided by purchase price. It measures the property's unlevered yield, ignoring your mortgage, so you can compare two buildings on the same footing.
What is cash-on-cash return?
Annual pre-tax cash flow divided by the cash you actually invested (down payment plus land transfer tax and closing costs). It answers 'what does my own money earn each year'.
What counts as net operating income (NOI)?
Gross rent minus vacancy allowance and operating expenses such as property tax, insurance, condo fees, maintenance, and property management. Mortgage payments are excluded from NOI by definition.
Is a negative cash flow property always a bad deal?
Not necessarily, but it means you fund the shortfall monthly and are relying on principal paydown and appreciation. That is a risk decision, not a calculation. Review it with a professional before committing.

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