Cash on cash
0%
your money, with the mortgage
Calculators For investors
For investors
For investors
Cap rate, and your real return
Two numbers that answer two different questions. Cap rate compares one property against another. Cash on cash tells you what your own money is actually earning once the mortgage is in the picture.
The numbers
Preloaded with a GTA example. Everything stays on your device.
The property (cap rate)
$
net operating income, before mortgage
$
$
%
no mortgage
$
Your deal (cash on cash)
$
$
$
$
This property
Cap rate
0%
the property, all cash
Cap rate judges the property as if you paid all cash, ignoring your mortgage. Use it to compare one property against another.
Cash on cash judges your deal, it factors in your mortgage and down payment. Use it to see what your actual money is earning.
Annual NOI$0
Purchase price$0
Cap rate0%
Total cash invested$0
Annual mortgage payments$0
Annual pre-tax cash flow$0
Cash on cash return0%
Typical 2026 Ontario cap rates (a rough guide, not a guarantee)
Class A urban (Toronto, Mississauga) about 4% to 5%. Suburban and small multifamily about 5% to 7%. Secondary markets often higher. Anything above roughly 8% in a major metro usually signals higher risk, deferred maintenance or a weaker location. Toronto condos often show the lowest cap rates and are frequently cash flow negative.
Common mistake: never put mortgage payments inside NOI. NOI is the property's income after operating expenses only. The mortgage belongs in the cash on cash step, not in the cap rate.
Jay Patel
REALTOR® · GTA
Comparing a few properties? Send me the numbers and I'll help you read the cap rates and returns side by side, honestly.
A quick, honest note. This is an educational estimate, not financial or investment advice. Cap rate and cash on cash are two useful snapshots, but neither captures appreciation, principal paydown, or tax. The benchmark ranges are typical for 2026 Ontario and can vary by neighbourhood and property type. Remember your mortgage is never part of NOI. For questions about how a rental fits your taxes, speak with an accountant, and for a read on a specific property, message me.