How do I calculate rental property cash flow?

Monthly cash flow = rent minus operating costs (property tax, condo fees, insurance, vacancy and maintenance allowances) minus the mortgage payment. A positive number means the property pays for itself; negative means you top it up monthly.

Cap rate = annual net operating income divided by purchase price. It measures the property's unlevered yield, ignoring your mortgage, and is the standard way to compare income properties.

What is a good cash-on-cash return?

Cash-on-cash return = annual cash flow divided by your down payment. What counts as 'good' depends on your alternatives and risk tolerance; many GTA condo investments currently run negative on a pure cash-flow basis, making the calculation essential before buying or holding.

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Rental Cash Flow
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Does the unit actually make money each month? Cash flow, cap rate, cash-on-cash and break-even rent — in seconds.

Purchase Price ($)

Down Payment (%)

Mortgage Rate (%)

Amortization (years)

Expected Monthly Rent ($)

Monthly Property Tax ($)

Monthly Condo Fees ($)

Monthly Insurance ($)

Vacancy Allowance (% of rent)

Repairs & Maintenance (% of rent)

Monthly Cash Flow

Annual Cash Flow

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Cap Rate (unlevered)

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Cash-on-Cash Return

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Break-Even Rent

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Estimate only — not financial, lending, tax or investment advice. Figures use standard formulas and the assumptions you enter; your lender, accountant or lawyer will produce exact numbers for your situation. E. & O.E. Cash flow ignores principal paydown and appreciation; cap rate = net operating income ÷ price; cash-on-cash = annual cash flow ÷ down payment.

Reading your result honestly

A negative number here doesn’t automatically mean a bad investment — principal paydown and long-term appreciation are real — but it does mean you’re funding the gap from your own pocket every month, and you should know that number before you buy or decide whether to keep holding. Widely reported CIBC/Urbanation analysis found the majority of Toronto investors with new condo mortgages in negative monthly cash flow, which is exactly why running this math matters now.

Deciding whether to hold or sell an underwater rental? Start with what the unit is actually worth today using the condo value estimator or home value estimator, then read Does an Etobicoke Investment Condo Actually Cash Flow in 2026? and what the 35-year sales low means for sellers.

Want a real number, not just a formula?

Let’s run your
actual numbers.

Contact Jatin

Want these numbers checked against a real property?

Send me the address and I will replace the assumptions with actual figures — current market rent for that unit type, the real condo fees, and what the taxes actually are.

Call or text 833-330-1925 Send me the address

Jatin Dua, Broker of Record — RE/MAX Quantum Realty Inc., Brokerage. Not intended to solicit buyers or sellers currently under contract with another brokerage.

Rental Cash FlowCalculator

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Rental Cash Flow
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