Most Canadian condo investors are cash-flow negative — but that doesn't always mean it's a bad investment. This calculator shows your true monthly carrying cost, cash flow, cap rate, and cash-on-cash return so you can decide whether the appreciation upside justifies the monthly shortfall.
Calculate the true monthly carrying cost of a condo investment, your cash flow, and whether the numbers work.
Enter the purchase price and down payment for the condo, your mortgage rate, monthly condo fee, monthly property tax, and monthly insurance. Then enter your expected monthly rental income, a vacancy rate (5% is standard — it accounts for time between tenants), and a property management fee if you plan to use a manager (8–10% of gross rent is typical; leave at 0% if self-managing).
The Monthly Cash Flow is the single most important number — it's your rental income minus every monthly cost. Positive means the property pays for itself and puts money in your pocket. Negative means you're topping up the shortfall from your own income every month. Most Toronto and Vancouver condos run negative $300–$800/month after all costs.
The Break-Even Rent is the minimum monthly rent needed to cover all costs. If your market rent is below this number, the property will always be cash-flow negative regardless of occupancy. This is a useful sanity check before you buy.
The Cap Rate (capitalization rate) measures the property's income return independent of financing. It's calculated as annual net operating income divided by purchase price. A higher cap rate means better income relative to price. Most Canadian condos have cap rates of 3–5%. The Cash-on-Cash Return measures the annual cash flow as a percentage of your actual cash invested (down payment + closing costs) — the return on your personal capital, accounting for mortgage leverage. Even with negative cash flow, equity paydown and appreciation can still make the investment worthwhile over a long horizon.
A cap rate of 4–5% is typical for Toronto and Vancouver condos. Calgary and Edmonton condos often yield 5–6%. Cap rates below 4% mean you're betting primarily on appreciation rather than income, which carries more risk.
Cash-on-cash return measures your annual net cash flow divided by your total cash invested (down payment + closing costs). A 5% cash-on-cash return means you earn $5 in annual net cash flow for every $100 invested.
Because purchase prices are high relative to rents. A $700,000 condo with a $140,000 down payment may have a $2,800/month mortgage payment but only generate $2,400/month in rent, creating negative monthly cash flow before maintenance, tax, and fees.
Not necessarily wrong — many investors accept negative cash flow in high-growth markets and profit from appreciation. The question is: can you sustain the monthly shortfall for 5–10 years? This calculator helps you determine whether your numbers are viable.
Explore current rates from 16+ Canadian lenders, or read our guides to understand your options.