Instructions

This calculator gives you a preview of your cash flow for the 1st year of operations.

Enter values from top to bottom, there are fields that autopopulates depending on what you entered in the fields above them.

There's a minimum down payment rule in effect, please click on the information icon to know more.

The CMHC Insurance amount gets calculated automatically and cannot be changed. If you choose "Commercial" as the property type next to the Address field, you can enter your own amounts.

The mortgage payment that is calculated uses the Canadian mortgage formula.

Please enter annual amounts for revenue and expenses.

You are able to use the '+' sign to add numbers and the '*' sign to multiply numbers in the following fields: Purchase price, Revenue, Taxes, Insurance and Other expenses.

This could be useful if you want to add sales taxes to the purchase price for a new construction (price * 1.14975 for example)

This could be useful to add municipal and school taxes without leaving the calculator (1230 + 448 for example)

The profitability metrics on the bottom will auto calculate as you are entering data.

Measures

Cash flow = Revenue - All expenses (includes mortgage payment)

Ideally, you have a positive cash flow, which means your rent from the property would be covering all your expenses.

Because a property tends to increase in value over time, a negative cash flow isn’t an indication of a bad investment, you need to manage your budget in order to make a good return on your investment a couple of years down the road when it’s time to sell or take equity out to do other projects.

GIM (Gross income multiplier) =
Purchase price / Revenue

Some investors use this measure to determine how long it would take to pay off a property using gross income. So, a lower GIM means that it would be paid off faster.

The major benefit of using the GIM is that it allows investors to compare properties of multiple sizes and types. A property that has a GIM of 16.5 vs another that has a GIM of 14.5 would mean that the second property offers more value than the first.

Cap rate =
(Revenue - expenses) / Purchase price
(excludes mortgage payment)

Higher cap rates are better. The result of the calculation is a percentage that approximates the annual rate of return an investor could expect if they were to purchase the property with cash.

Buttons

SAVE = Click to save a screenshot of the results to your computer or your phone.

COPY LINK = Click to get a link that you can use to share the results with others.

RESET = Reset the calculator