Is Your Rental Actually Profitable? The 6 Numbers Every Landlord Should Know

"It rents for $2,000 a month" tells you almost nothing about whether a property makes money. These six numbers do.

1. Cash flow

Rent minus all expenses and the mortgage. Positive cash flow means the property pays you every month; negative means you're feeding it. This is the number you feel in your bank account.

2. NOI (Net Operating Income)

Income minus operating expenses, before the mortgage. It isolates how the property itself performs, independent of how you financed it.

3. Cap rate

NOI ÷ purchase price. A quick way to compare properties regardless of financing — higher generally means a better return for the price. (3–5% is typical in major Canadian cities; 5–7% in mid-size markets.)

4. Cash-on-cash return

Annual cash flow ÷ the actual cash you put in (down payment + closing costs). This is your real return on your money — the number that tells you if the deal beats other places you could park your capital.

5. DSCR (Debt-Service Coverage Ratio)

NOI ÷ annual mortgage payments. Lenders love this one — above ~1.25 means the property comfortably covers its debt. Below 1.0 means the rent doesn't cover the mortgage.

6. The effect of extra payments

Often overlooked: paying a little extra principal each month can save tens of thousands in interest and shave years off the loan. It's one of the highest-return moves a landlord can make — and easy to model before you commit.

Run all six in under a minute — free

You don't need a spreadsheet. Our free rental property calculator computes all six (plus an amortization chart showing the impact of extra payments) on any property — no signup, no email wall.