Calculate Your Rental Property ROI
Enter your property details to calculate gross yield, net yield, and cash flow projections. Essential for Ontario real estate investors in Toronto, Mississauga, and the GTA.
Your Rental Property Analysis
Gross Rental Yield
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Net Rental Yield
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Annual Rental Income
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Total Annual Expenses
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Annual Mortgage Interest
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Net Annual Cash Flow
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Cash-on-Cash Return
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Total Investment
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Frequently Asked Questions
What is a good rental yield in Ontario?
In Ontario's GTA markets like Toronto and Mississauga, gross rental yields typically range from 3-6% for residential properties. Net yields after expenses average 2-4%. Markets outside the GTA may offer higher yields (5-8%) but come with different risk profiles. A CPA can help you evaluate whether a property's yield justifies the investment based on your financial goals and tax situation.
What's the difference between gross and net rental yield?
Gross rental yield is calculated as (Annual Rental Income / Property Value) × 100. It doesn't account for expenses. Net rental yield subtracts all operating expenses, mortgage interest, property taxes, insurance, and maintenance from rental income before dividing by property value. Net yield gives you a realistic picture of actual returns. Insight Accounting CPA in Mississauga helps Ontario investors calculate true after-tax returns on rental properties.
How does rental income affect my taxes in Canada?
Rental income is taxable in Canada at your marginal tax rate. However, you can deduct eligible expenses including mortgage interest, property tax, insurance, maintenance, and depreciation (CCA). The net rental income (or loss) is added to your personal income on your T1 return. Strategic planning with a CPA can maximize deductions while ensuring CRA compliance. Our Mississauga office specializes in rental property tax planning for Toronto and GTA landlords.
Should I claim CCA (depreciation) on my rental property?
Claiming Capital Cost Allowance (CCA) reduces your current tax bill but creates a recapture tax when you sell the property and may trigger capital gains on the depreciated amount. For principal residence exemption planning, claiming CCA can disqualify part of the exemption. A CPA should review your situation before claiming CCA. Insight Accounting serves Ontario real estate investors with strategic tax planning that considers both short-term savings and long-term implications.
What rental property expenses are tax-deductible in Ontario?
CRA allows deductions for mortgage interest (not principal), property taxes, insurance, utilities (if you pay them), advertising for tenants, property management fees, repairs and maintenance, legal and accounting fees, and condo fees. Capital improvements are not immediately deductible but can be claimed as CCA. You must keep detailed records and receipts. A Mississauga CPA can ensure you're claiming all eligible deductions while staying CRA-compliant across your Toronto and GTA rental portfolio.