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Investment Calculator
About This Calculator
Key Metrics Explained
- Cap Rate: Net operating income divided by purchase price. Higher is generally better for investors.
- Cash on Cash Return: Annual cash flow divided by total cash invested. Shows your actual return on money invested.
- DSCR: Debt Service Coverage Ratio - indicates ability to cover mortgage payments from rental income.
- IRR: Internal Rate of Return - accounts for all cash flows including equity build-up and property appreciation.
Canadian Mortgage Notes
- Calculations use semi-annual compounding (Canadian standard).
- Down payment requirements: 20% minimum to avoid CMHC insurance on investment properties.
- Projections assume consistent appreciation and rent growth rates.
- Always consult with a financial advisor before making investment decisions.