Leverage Calculators

Rental property leverage.

Analyse how mortgage leverage amplifies your rental property returns. See the four pillars — cash flow, appreciation, mortgage paydown, and tax benefits — and compare leveraged vs all-cash purchase.

Inputs

Property details
$
$
%
%
yr
$
Land transfer tax, legal fees, inspection, etc.
Rental income
$
%
%
Monthly expenses
$
$
%
%
0% = self-managed, 8–10% typical.
$
Condo fees, utilities, landscaping, etc.
Growth & tax
%
yr
$
Used for marginal tax rate.

Result

Fill the form and press Calculate.

The four pillars of real-estate return

Cash flow is the net rental income after expenses and mortgage. Appreciation is the increase in property value. Mortgage paydown is principal your tenants pay off for you. Tax benefits come from deductible expenses, interest, and Capital Cost Allowance. Leverage amplifies each pillar — a 20% down payment on a $500,000 property gives you 5:1 control and turns a 4% appreciation into a 20% return on your equity (before all other pillars).

In Canada, investment properties require a minimum 20% down (no CMHC insurance), and capital gains are taxed at a 50% inclusion rate up to $250,000 of gains (66.67% above). CCA recapture is taxed as ordinary income on sale.

Disclaimer

Educational estimates only. Real estate investing involves substantial risk. Consult licensed advisors before purchasing investment property.