Rental Property Cash Flow Calculator
Two investment questions worth checking early
Can NOI be positive while monthly cash flow is negative?
Yes. NOI is measured before mortgage debt service. A property can produce positive operating income but still have negative cash flow after financing, especially with a larger loan or higher rate.
Does positive cash flow mean the property is a good investment?
Not by itself. Building condition, tenancy, legal use, future repairs, market rent, financing risk, taxes and your exit plan can materially change the investment case.
Screen the rental property with operating cash flow before relying on appreciation
This calculator separates operating performance from financing: vacancy-adjusted rent and operating expenses create NOI, then mortgage debt service produces the modeled cash flow. CRA rental-income rules are a separate tax layer. CRA says rental income must be reported, distinguishes current expenses from capital expenses, and does not allow mortgage principal repayments as a deductible rental expense.
Take the screening numbers into a property-specific review.
Replace estimates with the actual lease, tax bill, insurance, financing, condition and expense history before relying on the cash-flow case.
Quick answers before you send your scenario.
How does CRA treat rental income and expenses?
Rental income must be reported. CRA allows reasonable expenses incurred to earn rental income subject to its rules, and distinguishes recurring current expenses from capital expenditures that generally provide a longer-lasting benefit.
CRA Rental Income guide →Can I deduct the mortgage payment from rental income?
CRA says mortgage principal repayments are not deductible rental expenses. Interest and bank charges can have different treatment when the applicable requirements are met.
CRA expenses you cannot deduct →Are repairs and renovations treated the same for tax?
No. CRA distinguishes current repairs from capital expenses based on the facts, including whether the work provides a lasting benefit or improves the property beyond its original condition.
CRA current vs capital expenses →What cap rate should I target?
There is no single cap rate that makes every property attractive. Compare the rate with the property type, location, lease quality, condition, financing alternatives and risks rather than using one universal threshold.
Does this calculator include appreciation or a future sale?
No. The calculator intentionally focuses on current operating income, expenses and financing. Future appreciation, selling costs, capital-gains treatment and exit value are separate assumptions.
What documents should I verify before relying on the result?
At minimum, verify leases, rent collection, operating expenses, property tax, insurance, utilities, building condition, legal use and the financing terms that will actually apply.
Have a property—or a move—in mind?
Bring the address, the numbers or the timing question. A focused 10-minute conversation can clarify the next step before you commit more time or money.