Total ROI
70.11%
Annualised ROI
7.01%
Total Return
$396,134.36
Cap Rate
2.40%
Common questions about property investment returns in Canada
A good total ROI depends on the market and holding period. In general, an annualised ROI of 8-12% (combining rental income and capital gains) is considered strong. Markets with lower property prices often have higher rental yields, while expensive cities like Toronto and Vancouver rely more on capital appreciation for returns.
Cap rate (capitalisation rate) is the net annual rental income divided by the purchase price. It measures the return from rent alone, ignoring financing and appreciation. A cap rate of 4-6% is typical in Canadian cities. Higher cap rates mean more income relative to price, but may come with higher risk or less appreciation potential.
Leverage (using a mortgage) amplifies both gains and losses. If you put 20% down and the property goes up 10%, your equity gains 50% because you only invested a fraction of the total price. However, leverage also increases your risk -- if the property drops in value, your losses are magnified. Mortgage interest reduces your net rental income as well.
Note: This calculator assumes constant rent, expenses, and appreciation. Real returns vary with market conditions, vacancy rates, and unexpected costs. Capital gains tax is not included in this estimate.
Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms
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