Real Estate
Price-to-Rent & 1% Rule Calculator
A fast screen on whether a property is priced to cash-flow. Combines the price-to-rent ratio with the investor’s “1% rule.”
Inputs
- Purchase price — All-in acquisition price of the property.
- Monthly rent — Market rent the property can command.
How to use this calculator
- Enter the purchase price and the market monthly rent.
- The tool shows rent as a percentage of price (the 1% rule) and the price-to-rent ratio.
- Passing 1% suggests it can cash-flow, but always confirm with local taxes and real expenses.
What each term means
- 1% rule
- A quick screen: monthly rent should be about 1% of the purchase price.
- Price-to-rent ratio
- Price divided by annual rent; lower favors buying to rent out.
- Rule of thumb
- A fast filter, not a full analysis. It only flags what to study.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.