What is Realty Cash Flow?

Realty Cash Flow manages 5 data types including property calculations. Helps you organize, track, and share your work in 1 place for teams and solo users.

Should I sell my rental property or keep it?

The decision to hold or sell a rental property depends on your equity, cash flow, opportunity cost, tax implications, and future appreciation potential. Use a hold-or-sell analysis to compare your net return from selling now versus holding for 1, 5, or 10+ more years.

What costs are involved in selling a rental property in Canada?

Selling costs typically include real estate agent commissions (3–5%), legal fees, mortgage prepayment penalties if breaking a fixed term early, and capital gains tax on the profit (50% inclusion rate for individuals in Canada).

How is capital gains tax calculated on a rental property in Canada?

In Canada, capital gains on investment properties are taxed at a 50% inclusion rate (as of 2024). This means 50% of your profit is added to your income and taxed at your marginal rate. For example, a $200,000 gain means $100,000 is added to your taxable income.

Realty Cash Flow Hold or Sell

Breakeven

Passed

Total P/L (Now)

$422,500

Hold or Sell Rental Property

Compare whether to sell or hold your rental property using real numbers. Analyze cash flow, appreciation, and profit over time with our freecalculator.Enter your property's history and see the net impact of selling now vs. holding longer.

Year-by-year net return analysis including appreciation, cash flow, selling costs, and optional tax adjustments

How are these calculations done? View full methodology →

Beta Feature

This is a beta feature. All projections are estimates and should be independently verified before making investment decisions. Use at your own discretion.

1. Original Purchase Details

Your starting investment — used to calculate capital gains and total return.

Property Name

City

Province

Original Purchase Price ($)

Original Down Payment

Down payment: $100,000 — Original loan: $400,000

2. Current Property & Mortgage State

Where things stand today — all future projections start from these values.

Current Property Value ($)

Used as the base for future appreciation projections

Current Mortgage Balance ($)

Mortgage Interest Rate (%)

Amortization Remaining (Years)

Monthly Mortgage Payment ($) — Optional

Auto-calculated: $2,501/mo

Months Left on Current Term

Used only for mortgage break penalty calculation

3. Current Rental Performance

Today's monthly income and expenses — used as the baseline for future projections.

Monthly Rental Income ($)

Total rent per month — multiplied by 12 for annual projections

Monthly Operating Expenses ($)

Exclude mortgage — include tax, insurance, maintenance, etc.

4. Historical Cash Flow Since Purchase

How much you've made or lost since buying — this shifts your total return calculation.

Total Net Cash Flow Since Purchase (After All Mortgage Payments)

Negative = you've spent more than earned. Positive = property has been cash flow positive overall.

Future Assumptions

Annual Rent Increase (%)

Applied to last year's income going forward

Annual Expense Increase (%)

Applied to last year's expenses going forward

Property Appreciation

Appreciation Source

ManualAuto

Uses the same exponential ramp as auto mode — enter cumulative appreciation over each period:

1-Year Total (%)

3-Year Total (%)

5-Year Total (%)

%/Year On-Going

Output Options

Estimated Selling Cost (% of sale price)

Agent commissions, legal fees, land transfer tax, and other costs deducted from sale proceeds.

Future Projection Years

How many years ahead to model, starting from today.

Capital Gains Tax

Estimates tax owed on the profit above your original purchase price and subtracts it from your results.

Alternative Investment Comparison

Show what your net sale proceeds today could grow to if invested elsewhere at the chosen rate. Displayed as a comparison line on the chart and column in the table.

Mortgage Break Penalty

Estimates the cost to break your mortgage term early (3 months' interest or IRD, whichever applies).

Historical Net Cash Flow

Since purchase (after all mortgage payments)

Current Mortgage Balance

Starting point for all projections

Cash at Closing (Now)

$522,500

If sold today

Total Profit/Loss (Now)

$422,500

If sold today

Return on Equity (ROE)

Current Property Value$550,000

Current Mortgage Balance− $0

Current Equity$550,000

Annual Net Cash Flow-$30,013

Annual Principal Paydown$0

Annual Appreciation (3%)$16,500

ROE (Cash Only — no Appreciation)

(Cash Flow + Principal) ÷ Start-of-Year Equity

Today

-5.5%

Yr 3

-5.3%

Yr 5

-5.3%

ROE (incl. Appreciation)

(Cash Flow + Principal + Appreciation) ÷ Start-of-Year Equity

Today

-2.5%

Yr 3

-5.3%

Yr 5

-2.3%

Low ROE? Consider whether selling and redeploying equity might yield better returns.

Investment Breakeven

Already passed

When Total P/L turns positive from today

Hold vs. Sell Today Breakeven

>10 yrs

When holding beats selling today

Cash at Closing & Total Profit/Loss Over Time

Tip: View on a larger screen for the full chart with Property Value line and more detail.

Purple dashed = Investment Breakeven | Amber dashed = Hold vs. Sell Breakeven

Cash at Closing
Total Profit/Loss
Property Value

Purple dashed = Investment Breakeven | Amber dashed = Hold vs. Sell Breakeven

Year-by-Year Sell vs. Hold Table

Sell Now$422,500

Property Value

$550,000

Equity

$522,500

Cash at Closing

$522,500

Annual CF

—

ROE (Cash)

-5.5%

ROE (w/ Appr)

-2.5%

In 1 yr$408,162

Property Value

$566,500

Equity

$538,175

Cash at Closing

$538,175

Annual CF

-$30,013

ROE (Cash)

-5.5%

ROE (w/ Appr)

-2.5%

In 2 yrs$378,148

Property Value

$566,500

Equity

$538,175

Cash at Closing

$538,175

Annual CF

-$30,013

ROE (Cash)

-5.3%

ROE (w/ Appr)

-5.3%

In 3 yrs$348,135

Property Value

$566,500

Equity

$538,175

Cash at Closing

$538,175

Annual CF

-$30,013

ROE (Cash)

-5.3%

ROE (w/ Appr)

-5.3%

In 4 yrs$318,121

Property Value

$566,500

Equity

$538,175

Cash at Closing

$538,175

Annual CF

-$30,013

ROE (Cash)

-5.3%

ROE (w/ Appr)

-5.3%

In 5 yrs$288,108

Property Value

$566,500

Equity

$538,175

Cash at Closing

$538,175

Annual CF

-$30,013

ROE (Cash)

-5.3%

ROE (w/ Appr)

-2.3%

In 6 yrs$274,239

Property Value

$583,495

Equity

$554,320

Cash at Closing

$554,320

Annual CF

-$30,013

ROE (Cash)

-5.3%

ROE (w/ Appr)

0.8%

In 7 yrs$260,856

Property Value

$601,000

Equity

$570,950

Cash at Closing

$570,950

Annual CF

-$30,013

ROE (Cash)

-5.1%

ROE (w/ Appr)

0.9%

In 8 yrs$247,970

Property Value

$619,030

Equity

$588,078

Cash at Closing

$588,078

Annual CF

-$30,013

ROE (Cash)

-5.0%

ROE (w/ Appr)

1.1%

In 9 yrs$235,600

Property Value

$637,601

Equity

$605,721

Cash at Closing

$605,721

Annual CF

-$30,013

ROE (Cash)

-4.8%

ROE (w/ Appr)

1.2%

In 10 yrs$223,757

Property Value

$656,729

Equity

$623,892

Cash at Closing

$623,892

Annual CF

-$30,013

ROE (Cash)

-4.7%

ROE (w/ Appr)

1.4%

Show columns:

Year	Equity	Cash Close	Total P/L	ROE Cash	ROE Appr
Sell Now	$522,500	$522,500	$422,500	-5.5%	-2.5%
In 1 yr	$538,175	$538,175	$408,162	-5.5%	-2.5%
In 2 yrs	$538,175	$538,175	$378,148	-5.3%	-5.3%
In 3 yrs	$538,175	$538,175	$348,135	-5.3%	-5.3%
In 4 yrs	$538,175	$538,175	$318,121	-5.3%	-5.3%
In 5 yrs	$538,175	$538,175	$288,108	-5.3%	-2.3%
In 6 yrs	$554,320	$554,320	$274,239	-5.3%	0.8%
In 7 yrs	$570,950	$570,950	$260,856	-5.1%	0.9%
In 8 yrs	$588,078	$588,078	$247,970	-5.0%	1.1%
In 9 yrs	$605,721	$605,721	$235,600	-4.8%	1.2%
In 10 yrs	$623,892	$623,892	$223,757	-4.7%	1.4%

* ROE columns use start-of-year equity as the denominator. A lower ROE over time may indicate your equity is becoming less productive.

AI Real Estate Advisor

For informational purposes only — not financial or legal advice. Always consult a licensed financial advisor or real estate professional before making investment decisions.

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