Commercial & Industrial Deal Calculator
Two due-diligence questions to check early
Why should I verify the actual property tax instead of estimating from purchase price?
Property tax is based on assessed value, municipality and property class, not simply a fixed percentage of the purchase price. Use the actual tax bill and classification when the property is known.
Toronto property-tax rates and classes →Does this calculator include GST/HST on a commercial property purchase?
No. CRA identifies sales and rentals of commercial real property as taxable supplies in many circumstances, but collection, self-assessment, input tax credits and elections can depend on the parties and transaction. Have the actual structure reviewed before setting closing cash.
CRA GST/HST supply guidance →Use NOI and debt coverage as a first screen, then underwrite the actual leases and property
The calculator separates property operations from financing so you can see effective income, operating expenses, NOI, debt service, DSCR and cash-on-cash in one view. Ontario land transfer tax is estimated using the non-single-family schedule, with Toronto MLTT added when Toronto is selected. HST/GST, environmental matters, zoning, leases, recoveries, tenant improvements and property-specific lender requirements remain outside the automatic model.
Move from ratio screening to transaction due diligence.
If the first-pass numbers survive, verify leases, recoveries, tax, environmental, zoning, building condition, financing covenants and transaction structure before relying on the return metrics.
Quick answers before you send the deal.
How is Ontario land transfer tax treated for commercial property?
Ontario’s general schedule applies 0.5% up to $55,000, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000 and 2% above $400,000 for property other than property with one or two single-family residences. Transaction facts can affect the value of consideration.
Ontario LTT calculation guidance →Does Toronto also charge MLTT on commercial property?
Yes, applicable Toronto transfers can also attract Municipal Land Transfer Tax. Toronto publishes a continuing non-single-family schedule that reaches 2% above $400,000. This tool adds that schedule when City of Toronto is selected.
City of Toronto MLTT rates →Is a higher cap rate always better?
No. A higher cap rate can reflect higher income, a lower price, greater lease risk, building condition, location risk, capital requirements or other factors. Review the reason behind the ratio.
What can make DSCR change after closing?
Rent collection, vacancy, expense changes, lease rollover, financing rate, amortization and lender adjustments can all change debt coverage. Stress-test the property rather than treating one DSCR as permanent.
What should I review in leases before relying on NOI?
Review rent, term, options, arrears, inducements, recoveries, operating-cost definitions, renewal rights, termination rights and tenant obligations. The calculator assumes the income and expense entries are reliable.
What major items are intentionally outside this calculator?
Examples include environmental liabilities, zoning and permitted use, building-condition work, tenant improvements, leasing commissions, lender reserves, HST/GST treatment, corporate tax, CCA/recapture and transaction-specific legal due diligence.
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.