Rental Property ROI Calculator for Alberta

Property details

Purchase price

Down payment

Mortgage rate

Amortization period

yrs

Income and expenses

Expected monthly rent

Annual property taxes

Annual insurance

Include property management fee

Tax settings Sources: CRA T776, T4002, T4037

Your marginal tax rate

Verify at Canada.ca — Tax rates and income brackets for individuals

Building value (% of purchase price)

Land is not depreciable. Check your municipal assessment.

Claim CCA depreciation

Class 1 at 4% declining balance. Half-year rule applies in year 1.

Multi-year projection

Hold period

yrs

Annual rent increase

Annual appreciation

Year 1 results (pre-tax)

Monthly mortgage payment

Monthly cash flow

Annual cash flow

Cap rate

Cash-on-cash return

Year 1 results (after tax)

After-tax monthly cash flow

After-tax annual cash flow

After-tax cash-on-cash return

Income tax on rental income

CCA deduction year 1

Analysis

Multi-year projection

Year	Property value	Annual rent	Interest	CCA	Tax	Pre-tax CF	After-tax CF	Cumulative CF	Mortgage bal.

Sale analysis at end of hold period

Projected sale price-

Capital gain-

Capital gains tax (50% inclusion)-

CCA recapture tax-

Total tax on sale-

Equity at sale-

Net equity after sale tax-

Cumulative after-tax cash flow-

Total return after tax-

Results are estimates for planning and educational purposes only, not financial or tax advice. Tax formulas sourced from CRA T776, T4002 and T4037. Vacancy, maintenance and closing costs not included. Consult a qualified Canadian accountant before making investment decisions.

Investing in Alberta rental property

Land transfer tax Not applicable

Alberta does not charge a provincial Land Transfer Tax on real estate purchases. A minimal Land Title Transfer Fee applies, but it is significantly smaller than land transfer taxes in most other Canadian provinces. This makes Alberta one of the most affordable provinces for acquisition costs.

Rent control No rent control

Alberta has no rent control. Landlords can raise rent by any amount with proper written notice. Rent can only be increased once every 365 days per tenancy and landlords must provide at least three months written notice before the increase takes effect. Between tenancies, new rent can be set at any market rate.

Legislation and disputes

Alberta landlord-tenant relationships are governed by the Residential Tenancies Act (Alberta). The Residential Tenancy Dispute Resolution Service (RTDRS) at rtdrs.alberta.ca provides an affordable alternative to the courts for resolving disputes and handles applications related to unpaid rent, damage deposits, repairs and evictions.

Common questions about Alberta rental property

Is there rent control in Alberta?

Alberta has no rent control legislation. Landlords can increase rent by any amount but only once every 365 days per tenancy and with a minimum of three months written notice. Between tenancies, rent can be reset to any market rate. This makes Alberta relatively landlord-friendly compared to provinces like Ontario, BC and Manitoba.

What makes Alberta attractive for rental property investment?

Alberta offers no provincial land transfer tax, no rent control, relatively affordable property prices compared to Ontario and BC, and strong rental demand in Calgary and Edmonton. Positive cash flow is more achievable in Alberta than in most major Canadian markets.

Is Calgary or Edmonton a better rental market?

Both cities have active rental markets. Calgary has generally seen stronger population growth in recent years. Edmonton is the provincial capital with a more diversified public-sector economy and slightly more affordable property prices. Run the numbers on specific properties in each city with this calculator to compare.

What legislation governs landlords and tenants in Alberta?

The Residential Tenancies Act (Alberta) governs most residential landlord-tenant relationships in the province. The Residential Tenancy Dispute Resolution Service (RTDRS) at rtdrs.alberta.ca handles most common disputes quickly and affordably.

Analyze any Alberta property

Return to the main calculator for the full experience or explore our guides for Canadian real estate investors.

Main calculator New landlord checklist

This page is for informational purposes only and does not constitute financial, tax or legal advice. Rules and legislation vary and change. Verify current rules with the Alberta RTDRS and consult a qualified advisor before making investment decisions.