Calgary rental yield calculator
Cap rate, net operating income and real monthly cash flow, with every assumption visible, because a cap rate quoted without its assumptions is close to meaningless.
Most Calgary condo and single-family rentals currently produce a cap rate between 3.5% and 5%, which means the return leans on appreciation and mortgage paydown rather than income. Below about 3.5% the property is priced for appreciation alone. Above 7% is unusual for Calgary and normally signals deferred maintenance, a difficult location, or a rent figure that is not actually achievable. Cap rate is net operating income divided by price, and it excludes financing entirely.
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Projection from the assumptions above, not a forecast or a guarantee of return. Verify property tax, condo fees and insurance for the actual address before relying on it. Mortgage payments use semi-annual compounding, the Canadian convention. US-convention monthly compounding overstates it.
Why cap rate and cash flow disagree
Cap rate deliberately ignores financing: it measures the property, not the deal. Two buyers paying the same price for the same building get the same cap rate and completely different cash flow, because one put 20% down and the other 35%. Use cap rate to compare properties against each other, and cash flow to decide whether you can afford to hold this one.
The number that gets missed most often is debt service coverage: net operating income divided by annual mortgage payments. Most lenders want 1.2 or better on a rental. Below that, one vacancy or one furnace is the difference between an inconvenience and a forced sale.
Want a second opinion on the numbers?
Send the address and I'll tell you what it actually rents for and what it actually costs to run.
Last updated 2026-08-19 · Written by Mohammad Emon, REALTOR® (SRES®) & Licensed Property Manager, KO Realty · RECA licence LIC-00666633