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Investment Property Calculator
Analyze rental property returns in Edmonton. Cap rate, cash flow, and ROI with live market data.
Live Market Data
BoC rates as of May 14, 2025 · CMHC rents from October 2025 · 2025 mill rates
Policy Rate
2.25%
Vacancy Rate
3.9%
Property Tax Rate*
1.01%
*Property tax rate = 2025 residential mill rate (10.1391 per $1,000 assessed value) from City of Edmonton Open Data. Effective rate: assessed value × 1.014%.
Property & Financing
Owner-Occupied (live in one unit)
Qualify for residential financing: as low as 5% down with CMHC insurance
Investment financing: 20% minimum down payment, no CMHC insurance available.
$84,000 (20.0%) · Total cash needed: $87,420
Current prime: 4.45%
Rental Income
CMHC avg rents, Edmonton CMA (October 2025)
Operating Expenses
All defaults sourced from live data where possible. Adjust for your specific property.
2025 mill rate: 10.1391/1000
Industry avg ~$165/mo SFH
$0 if tenants pay. Common in 4-plex: $400–600 total
Monthly Cash Flow
-$919
-$11,030/year after all expenses & mortgage
Investment Metrics
NOI / Purchase Price
Annual CF / Cash Invested
NOI / Debt Service
Deal Summary
*Alberta has no land transfer tax. Estimate includes legal, title transfer, inspection, appraisal.
Monthly Breakdown
5-Year Projection
Assuming 3.0% annual appreciation and constant rents. Adjust the slider above to model scenarios.
| Year | Property Value | Loan Balance | Equity | Cash Flow | Principal Paid | Appreciation | Total Return |
|---|---|---|---|---|---|---|---|
| 1 | $432,600 | $328,512 | $104,088 | -$11,030 | $7,488 | $12,600 | $9,057 |
| 2 | $445,578 | $320,684 | $124,894 | -$11,030 | $7,828 | $12,978 | $9,776 |
| 3 | $458,945 | $312,499 | $146,446 | -$11,030 | $8,185 | $13,367 | $10,521 |
| 4 | $472,714 | $303,942 | $168,771 | -$11,030 | $8,557 | $13,768 | $11,295 |
| 5 | $486,895 | $294,996 | $191,899 | -$11,030 | $8,946 | $14,181 | $12,097 |
| Total | -$55,150 | $41,004 | $66,894 | $52,747 |
5-year total return on $87,420 invested: $52,747 (60.3% total · 9.9% annualized)
Why Investors Choose Edmonton
Edmonton Cap Rates
5–8%
typical residential range
Toronto Cap Rates
2–4%
much higher entry price
Vancouver Cap Rates
2–3%
appreciation-driven market
Lower entry, higher yield. Edmonton's average detached home is $590,162 — roughly one-third of Greater Toronto and one-quarter of Greater Vancouver. Combined with strong rents, this creates significantly better cash flow from day one.
No land transfer tax. Alberta has no provincial land transfer tax, saving investors thousands on each purchase compared to Ontario or BC.
The 4-plex advantage. Owner-occupied properties with up to 4 units qualify for residential financing — as low as 5% down with CMHC insurance. This dramatically reduces the cash needed to enter the market while capturing rental income from multiple units.
Understanding the Metrics
Cap Rate — Net Operating Income ÷ Purchase Price. Measures the property's return independent of financing. Higher = better yield. Edmonton typically 5–8% for residential.
Cash-on-Cash Return — Annual cash flow ÷ total cash invested (down payment + closing costs). Measures return on your money. Leverage amplifies this vs. cap rate.
DSCR — Debt Service Coverage Ratio. NOI ÷ annual mortgage payments. Lenders typically want ≥ 1.2x. Below 1.0 means the property can't cover its debt from operations alone.
GRM — Gross Rent Multiplier. Purchase price ÷ annual gross rent. Lower = quicker payback. A rough screening tool — doesn't account for expenses.
Important Notes
This is an estimate. Actual returns depend on the specific property, tenant quality, management efficiency, and market conditions. Always verify numbers with your lender and accountant before purchasing.
Tax implications not included. Rental income is taxable, but expenses and mortgage interest are deductible. Depreciation (CCA) can shelter income further. Consult a tax professional for your specific situation.
Owner-occupied financing: Properties with up to 4 units qualify for residential rates if you live in one unit. Above 4 units requires commercial financing with different terms.
Data Sources
- Average sale prices: CREA/REALTORS® Association of Edmonton MLS® data (February 2026)
- Average rents & vacancy: Source: Canada Mortgage and Housing Corporation (CMHC), Rental Market Survey, October 2025. Reproduced and distributed on an as-is basis with the permission of CMHC.
- Interest rates: Bank of Canada Valet API (as of May 14, 2025)
- Property tax: City of Edmonton Open Data Portal — Residential tax rates (dataset pwis-wc4c), 2025 rates
- Mortgage calculations: Canadian semi-annual compounding per Bank Act. CMHC insurance premiums per published schedule.
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