Rental Property ROI Calculator for Prince Edward Island

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 Prince Edward Island rental property

Real Property Transfer Tax Applies

Prince Edward Island charges a Real Property Transfer Tax on all property purchases calculated as a percentage of the purchase price. PEI also charges a non-resident ownership tax on property owned by non-residents of the province, which can apply to out-of-province investors. Confirm your tax obligations with a PEI lawyer before completing a purchase.

Rent control Applies

PEI has rent control administered through the Island Regulatory and Appeals Commission (IRAC). Annual allowable rent increases are set by IRAC and apply to most residential tenancies. Landlords must apply to IRAC if they wish to increase rent above the allowable amount. Verify the current guideline at irac.pe.ca/rentals before issuing any rent increase notice.

Legislation and disputes

PEI landlord-tenant relationships are governed by the Rental of Residential Property Act. IRAC at irac.pe.ca/rentals administers both rent control and tenancy dispute resolution. Charlottetown has experienced significant rental demand growth driven by population growth and limited housing supply.

Common questions about Prince Edward Island rental property

How does rent control work in PEI?

PEI's rent control is administered by the Island Regulatory and Appeals Commission (IRAC). IRAC sets an annual allowable rent increase percentage that applies to most residential tenancies. Landlords can apply to IRAC for permission to increase rent above the allowable amount. Current guidelines are published at irac.pe.ca/rentals.

What is the Real Property Transfer Tax in PEI?

PEI charges a Real Property Transfer Tax on all property purchases calculated as a percentage of the purchase price. PEI also has a non-resident ownership tax that may apply to investors who are not residents of the province. Confirm all applicable taxes with a PEI real estate lawyer before completing a purchase.

Is Charlottetown a good rental property investment?

Charlottetown has experienced strong rental demand driven by population growth, immigration and limited housing supply. Vacancy rates have been very low. Property prices have risen substantially from historical norms but remain lower than in major mainland cities.

What is IRAC and what role does it play for landlords?

IRAC, the Island Regulatory and Appeals Commission, administers rent control and residential tenancy disputes in PEI. It sets the annual allowable rent increase, hears applications for above-guideline increases, and adjudicates disputes between landlords and tenants. Their website at irac.pe.ca/rentals is the primary resource for current rules.

Analyze any Prince Edward Island 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. PEI has specific non-resident ownership rules that may affect out-of-province investors. Verify current rules with IRAC and consult a qualified PEI lawyer and advisor before making investment decisions.