Annual Expenses
Gross Yield
4.80%
Net Yield
2.30%
Annual Rent
$26,400.00
Net Rent
$12,660.00
Common questions about rental yield in Canada
A good gross rental yield in Canada typically ranges from 4% to 8%, depending on the city. Smaller cities and towns tend to offer higher yields, while expensive markets like Vancouver and Toronto often have lower yields (2-4%) due to high property prices. Net yield after expenses is usually 1-3% lower than gross yield.
Gross yield is your annual rent divided by the property value -- it does not account for any costs. Net yield subtracts all your annual expenses (property tax, insurance, maintenance, management fees, condo fees) from the annual rent before dividing by the property value. Net yield gives you a more realistic picture of your actual return.
Common rental expenses include property tax, insurance, maintenance and repairs, property management fees, condo or strata fees, advertising for tenants, legal and accounting fees, and utilities if you pay them. Mortgage payments are not included in yield calculations because yield measures the return on the property itself, not your financing structure.
Note: Rental yield does not include mortgage costs. It measures return on the property value. Actual cash-on-cash return depends on your financing, down payment, and mortgage rate.
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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