What rent does a $400,000 rental need in Canada?
About $2,650/month CAD to break even, and $2,900/month for $200 of monthly cash flow — with 20% down at a 5% rate.
Assumes typical costs: property tax 0.8% and insurance 0.35000000000000003% of the price per year, 5% vacancy, 10% of rent for repairs, and a 25-year amortization with semi-annual compounding. Plug in your real numbers on the right.
| Rate | 20% down: break even / +$200 | 25% down: break even / +$200 |
|---|---|---|
| 4% | $2,450 / $2,675 | $2,325 / $2,550 |
| 4.5% | $2,550 / $2,775 | $2,425 / $2,650 |
| 5% | $2,650 / $2,900 | $2,525 / $2,750 |
| 5.5% | $2,750 / $3,000 | $2,625 / $2,850 |
The 1% rule would ask for $4,000/month. It's a quick screen only — taxes, insurance and the rate decide the real answer.
Quick check
Canada · CAD
Monthly cash flow
$221/mo
Preliminary verdict
Proceed with caution
Cash flow is positive, but the cushion over the mortgage is thin.
- Cash flow
- $221/mo
- Cap rate
- 6.25%
- DSCR
- 1.12
Counted
Mortgage (25-yr, semi-annual compounding), property tax ~0.8%/yr, insurance ~0.35%/yr, 5% vacancy, 10% of rent for repairs.
Not counted yet
Land transfer tax, legal fees, condo fees, a property manager, and your actual tax and insurance quotes. Add them in the full analysis.
How we calculate · An estimate to screen deals, not financial advice.
Other prices
Related: rental property calculator · DSCR calculator · cap rate calculator