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Secondary Suite ROI Calculator
Model a basement, internal, garden or laneway suite using Canadian construction, rent, financing, vacancy and tax assumptions.
Advanced mode reveals editable assumptions. Values remain unchanged when modes switch.
Property or project
Costs
Financing
Operating assumptions
Time horizon
Principal repayment is not treated as an operating expense or tax deduction. Property-value uplift is excluded.
What is a secondary-suite return on investment?
Estimate suite construction cash flow, financing, vacancy, tax and break-even rent. The model builds a month-by-month suite cash flow, separates rental income from vacancy and operating costs, and tracks financing interest and principal over the selected horizon. It then reports homeowner cash flow and unlevered project value so debt effects stay visible.
With the values entered, the calculator estimates estimated project NPV of $7,845. This scenario uses province or territory set to British Columbia, suite type set to Basement suite, total construction budget of $180,000, and expected monthly rent of $2,100. The supporting results show cash invested of $72,000 and loan amount of $108,000, which makes the main drivers easier to compare. Positive estimated monthly cash flow after construction. Compare monthly cash flow with unlevered ROI rather than relying on rent alone. A suite can appear profitable before vacancy, repairs, financing, tax, insurance, and construction risk; verify those items before treating the result as investable return.
Formula or decision method
Secondary Suite ROI Calculator decision method
The model builds a month-by-month suite cash flow, separates rental income from vacancy and operating costs, and tracks financing interest and principal over the selected horizon. It then reports homeowner cash flow and unlevered project value so debt effects stay visible.
Data provenance
The model combines the values entered above with CRA rental expenses. Source dates and geographic treatment appear with the calculator, while personal balances, prices, rates, dates, and household facts still need to come from current statements, quotes, or official records.
Sensitivity test
| Input | Calculated result |
|---|---|
| Total construction budget: $162,000 | $26,009 |
| Total construction budget: $180,000 | $7,845 |
| Total construction budget: $198,000 | -$10,318 |
Methodology
Monthly schedules separate rent, vacancy, operating costs, financing interest, principal, and estimated tax. Construction months produce no rent.
Official sources
Last reviewed 2026-07-15.
CRA rental expenses
Canada · informational · verified 2026-07-15
Frequently asked questions
Is this secondary suite ROI a quote?
No. It is a planning estimate. Replace defaults with written quotes and current bills before committing money.
Are rebates included automatically?
No. Only confirmed amounts you enter are deducted. Potential programs remain informational until eligibility is verified.
What does payback mean?
Payback is the first period when cumulative estimated benefits equal or exceed the selected net cost.
Why can the result show no payback?
Some projects do not recover their lifecycle cost within the selected ownership horizon. The calculator reports that directly.
Can I use contractor or utility numbers?
Yes. Advanced mode is designed for current quotes, equipment specifications, utility rates, and financing terms.
Suite ROI and tax
Construction is treated as capital spending. The estimate deducts recurring costs and financing interest, never principal.
Disclaimer
Rental and tax estimate only. Confirm permits, zoning, insurance and tax treatment with qualified professionals.
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Practical pathways
Continue this Canadian planning journey
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Page details
Author: Thomas Tremblay
Updated: July 15, 2026
Cite: Canooq.ca, Secondary Suite ROI Calculator
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