Calculate your investment property return
Rental Yield Calculator Canada
Calculate gross and net rental yield on any Canadian investment property. See your annual return based on purchase price, monthly rent, and ownership costs.
Enter your details
≈ $576/week · $29,952/year
Rates, insurance, maintenance, property management
% of year property sits vacant
Used for cash-on-cash return (leave 0 to skip)
Gross rental yield
4.28%
Before expenses & vacancy
Net rental yield
2.78%
After expenses, before tax
Annual rent income
$29,952
After vacancy
Annual expenses
$10,500
Net annual income
$19,452
How does your yield compare?
Rent breakdown
Per week
$576
Per month
$2,496
Per year
$29,952
How this calculator works
Rental yield is the annualized return from a rental property expressed as a percentage of its value. In Canada's major markets, residential rental yields have compressed significantly due to high property prices — Toronto and Vancouver often see gross yields of just 3–5%.
Many Canadian investors look to secondary cities (Hamilton, London, Kitchener-Waterloo, Calgary, Edmonton) for stronger yield fundamentals. These markets may offer 5–8% gross yields while still benefiting from solid long-term appreciation.
Net yield accounts for Canadian-specific ownership costs: property management fees (typically 8–12% of rent), maintenance, property taxes (which vary significantly by municipality), insurance, and vacancy. High property taxes in some Ontario municipalities can substantially reduce net yields.
Note that for investment properties in Canada, mortgage interest is generally tax-deductible, which improves after-tax returns. Capital cost allowance (CCA) may also be claimed. Consult a tax professional for the full picture.
Worked example
- 1Annual gross rent: $2,400 × 12 = $28,800
- 2Effective rent (4% vacancy): $28,800 × 0.96 = $27,648
- 3Gross yield: $27,648 / $600,000 × 100 = 4.61%
- 4Net income: $27,648 - $12,000 = $15,648
- 5Net yield: $15,648 / $600,000 × 100 = 2.61%
Frequently Asked Questions
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Try calculatorDisclaimer: Calculations are estimates for informational purposes only and do not constitute financial advice. Mortgage rules, taxes, and CMHC insurance requirements vary by province. Consult a licensed mortgage broker before making financial decisions.