Cap Rate and Rental Property Cash Flow Calculator
The capitalization (cap) rate is a rental property's net operating income divided by its price. You can fill in the rent and vacancy from CMHC's latest Rental Market Survey for your metro, then adjust them.
Calculator
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Cap rate
3.02%
Net operating income ÷ price
Cash flow after mortgage
-$11,510
Cash-on-cash return: -10.5%
| Item | Amount |
|---|---|
| Gross rent | $26,400 |
| Less vacancy | −$792 |
| Less operating expenses | −$9,000 |
| Net operating income | $16,608 |
| Mortgage payments | −$28,118 |
| Cash flow | -$11,510 |
Before income tax. Doesn't include closing costs, appreciation or principal repaid.
How it's calculated
- Net operating income = rent × 12, less the vacancy allowance, less operating expenses.
- Cap rate = net operating income ÷ purchase price.
- Cash flow = net operating income less mortgage payments, with semi-annual compounding for fixed rates.
- Cash-on-cash return = cash flow ÷ down payment.
About the metro figures
The metro option uses CMHC's average rent for a 2-bedroom unit in purpose-built rental buildings and the vacancy rate from the same survey. Rents for new tenants and for condos or houses can differ.
Sources
Informational only, not financial advice. Data as of the release snapshot generated 2026-11-14.