Canada Rental Cap Rate Calculator
Derive the cap rate, net operating income and implied value of a Canadian rental property, with a NOI and cap-rate sensitivity matrix.
- Toronto Cap
- 3.8%
- Average
- Calgary Cap
- 5.4%
- Average
- Void Allowance
- 3%
- Annual
Formula & Statutory Rule
Formula
cap_rate = NOI / price × 100
Statutory Rule
NOI = gross_rent − vacancy_loss − operating_expensesRegional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| Toronto | 3.8% | Average |
| Calgary | 5.4% | Average |
| Void | 3% | Annual |
Frequently Asked Questions
What cap rate do Canadian rentals trade at?
Toronto averages around 3.8% and Calgary around 5.4%, reflecting different supply and demand.
What expenses belong in NOI?
Property tax, insurance, maintenance, management and utilities, but not debt service.
How is vacancy modelled?
Vacancy is applied as a percentage of gross rent, with 3% a common planning assumption.
Can I solve for price?
Yes. Enter a target cap rate and the calculator solves the implied purchase price.