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Cash damming calculator for Canadian property investors
Back to Home Tax Strategy Calculator

Rental Cash Damming Calculator

Convert your non-deductible primary mortgage into tax-deductible debt using rental income. See your potential tax savings and mortgage freedom date.

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Tax Deduction Conversion

Convert non-deductible to deductible

Wealth Projection

30-year net wealth forecast

Mortgage Freedom Date

Accelerated payoff timeline

Primary Residence

$
$
%
yrs
%

Rental Property

$
$
%
yrs
$
$
$

Assumptions

%
%
%

Debt Conversion Summary

Debt Conversion Timeline

9.5 years

Total Tax Refunds

$145,732

Payments Reduced

58

Future Payment Savings

$162,647

Pre-Tax Income Equivalent Savings

$271,078

Mortgage Freedom

With Rental Sale

Sell rental, pay off primary

12.0 yrs

Holding Rental

Keep building equity

25.25 yrs

30-Year Wealth Projection

Future Rental Value

$1,221,610

Invested Payment Savings

$188,145

Net Wealth Improvement

$1,409,755

Monthly Cash Flow (Year 1)

Primary Mortgage Payment $2,804
Rental Mortgage Payment $2,103
Rental Income +$2,500
Total Rental Expenses -$850
Net Rental Cash Flow -$253
HELOC Interest (Monthly) ~$135

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How Cash Damming Works

1

Apply Rental Income

Your rental income goes directly to your primary (non-deductible) mortgage principal, accelerating paydown.

2

Draw from HELOC

Pay all rental expenses from your re-advanceable HELOC, creating tax-deductible investment debt.

3

Claim Tax Deductions

Deduct the HELOC interest used for rental expenses, generating annual tax refunds.

Disclaimer: This calculator provides estimates for educational purposes only. Consult with a qualified tax professional and mortgage broker before implementing any tax strategy. Individual results may vary based on your specific financial situation.