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Canada Rental Yield Calculator

Compare gross rental yield and operating yield before financing and tax. Change the inputs below and the estimate updates immediately.

Input

Your numbers

Calculated result

Gross rental yield on purchase price

6%

Operating yield on acquisition cost

4.41%

Annual net operating income

CAD 22,500.00

Estimate only. Verify important decisions with an appropriate professional or official source.

How to use it

A quick estimate, without the spreadsheet.

Inputs and units

Enter purchase price, acquisition costs, monthly rent, vacancy percentage and annual operating expenses.

Formula

Gross yield = annual scheduled rent / price × 100. Operating yield = rent after vacancy and operating costs / total acquisition cost × 100.

Worked example

CAD 2,500 monthly rent on a CAD 500,000 property gives a 6% gross yield before vacancy or expenses.

Assumptions and limitations

Operating return before financing and income tax. Include property tax, insurance, repairs and management in operating expenses as appropriate. Appreciation, disposal costs and mortgage payments are excluded.