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The down payment is the initial upfront portion of the total purchase price that you pay when buying a property. If a property is purchased with the intention of just being a rental, it generally is 20% of the purchase price. If you are going to live in it, it generally is 5%. Your local mortgage professional would be able to determine the down payment you require.

The mortgage rate is the rate of interest charged on a mortgage. The monthly payment is calculated using this formula: \[P = L\frac{r(1+r)^n}{(1+r)^n-1}\] where: \[P = \text{Monthly Payment}\] \[L = \text{Loan Amount}\] \[r = \text{Monthly Interest Rate (Annual Rate ÷ 12)}\] \[n = \text{Total Number of Months}\] Leaving this on "Auto" will assume 5%.

The mortgage term is the length of time you agree to pay back your mortgage. The most common mortgage term is 25 years. The longer the term, the lower your monthly payments will be, but the more interest you will pay over the life of the mortgage. The shorter the term, the higher your monthly payments will be, but the less interest you will pay over the life of the mortgage. Leaving this on "Auto" will assume 25 years

Property tax is a tax on real estate levied by the government. Annual property tax is calculated as: \[T_{\text{annual}} = V \times R\] where: \[V = \text{Property assessment}\] \[R = \text{Tax rate}\] Monthly property tax would be: \[T_{\text{monthly}} = \frac{T_{\text{annual}}}{12}\] Leaving this on "Auto" will assume 1% of the list price annually. We use the list price as the property assessment, because all properties for sale have a list price, but often the assessed value is unavailable. You can enter your own annual percentage, or you can enter an exact amount for the annual taxes in dollars.

Property insurance is typically calculated as an annual percentage of property value: \[I_{\text{monthly}} = \frac{V \times R_{\text{ins}}}{12}\] where: \[V = \text{Property Value}\] \[R_{\text{ins}} = \text{Annual Insurance Rate}\] Leaving this on "Auto" will assume 0.4% of the list price annually. You can enter your own annual percentage, or you can enter an exact amount for the annual insurance in dollars.

Maintenance reserve is calculated annually as a percentage of property value, then divided by 12 for monthly: \[M_{\text{monthly}} = \frac{V \times R_{\text{maint}}}{12}\] where: \[V = \text{Property Value}\] \[R_{\text{maint}} = \text{Annual Maintenance Rate}\] Leaving this on "Auto" will assume 1.5% of the list price annually. You can enter your own annual percentage, or you can enter an exact amount for the annual maintenance reserve in dollars.

Property management fees are typically calculated as a percentage of collected rent: \[F_{\text{mgmt}} = R_{\text{effective}} \times M\] where: \[F_{\text{mgmt}} = \text{Monthly Management Fee}\] \[R_{\text{effective}} = \text{Effective Monthly Rent}\] \[M = \text{Management Fee Rate}\] Leaving this on "Auto" will assume 10% of the rent. You can enter an annual amount in dollars, or your own percentage.

Condo fees are the fees you pay to the condo association to maintain the building and common areas. This is a fixed amount. Leaving this on "Auto" will assume $0. You can enter your own monthly amount in dollars.

Utilities are the services you pay for to keep your property running. This is a fixed amount. Leaving this on "Auto" will assume $0 (which essentailly assumes the renter will be paying them). You can enter your own monthly amount in dollars.

The vacancy rate affects your effective rental income. With a vacancy rate \(v\), your effective monthly rental income is calculated as: \[R_{\text{effective}} = R_{\text{potential}} \times (1 - v)\] where: \[R_{\text{effective}} = \text{Effective Monthly Rent}\] \[R_{\text{potential}} = \text{Potential Monthly Rent}\] \[v = \text{Vacancy Rate (as decimal)}\] Leaving this on "Auto" will assume 8% unpaid vacancy every year. You can enter your own percentage.

Closing costs are calculated as a percentage of the purchase price: \[C = V \times R_{\text{closing}}\] where: \[C = \text{Closing Costs}\] \[V = \text{Property Value}\] \[R_{\text{closing}} = \text{Closing Cost Rate}\] Leaving this on "Auto" will assume 1.5% of the list price. Closing costs can vary massively due to land transfer taxes across various states/provinces. You can enter your own percentage.