Rent-to-Price Ratio Calculator (1% Rule)
Fill in the values and the answer updates as you type.
How the Rent-to-Price Ratio Calculator (1% Rule) works
Rent-to-price ratio = monthly rent ÷ purchase price × 100. The 1% rule says monthly rent should be at least 1 percent of the price, and the 2% rule asks for 2 percent. They are quick filters for finding rentals that may cover their costs, not a replacement for a full cash flow analysis, and expensive markets rarely pass them. Example: A $250,000 property renting for $2,300 a month has a ratio of 0.92 percent, which is below the 1% rule. It would need $2,500 of rent to pass.
Inputs and results
The Rent-to-Price Ratio Calculator (1% Rule) takes 2 inputs and gives 4 results.
What you enter
- Purchase price ($) — starts at 250000.
- Monthly rent ($) — starts at 2300.
What you get
- Rent-to-price ratio
- Result
- Rent needed for the 1% rule
- Rent needed for the 2% rule
Example: Rent-to-Price Ratio Calculator (1% Rule) with the starting values
With purchase price 250000 $ and monthly rent 2300 $, the calculator returns:
| Rent-to-price ratio | 0.92% |
|---|---|
| Result | Below the 1% rule |
| Rent needed for the 1% rule | $2,500 |
| Rent needed for the 2% rule | $5,000 |
Change any value above and the results update straight away.
Rent-to-Price Ratio Calculator (1% Rule) FAQ
How do I use the Rent-to-Price Ratio Calculator (1% Rule)?
Enter purchase price and monthly rent in the fields, then read rent-to-price ratio, result, rent needed for the 1% rule and rent needed for the 2% rule in the result panel. The answer updates as you type, and you can press Calculate or Enter to refresh it. Use “Copy link” to share your exact numbers with someone else.
What does the Rent-to-Price Ratio Calculator (1% Rule) calculate?
Check a rental against the 1% and 2% rules of thumb. It returns rent-to-price ratio, result, rent needed for the 1% rule and rent needed for the 2% rule from the 2 values you provide.
What values does the Rent-to-Price Ratio Calculator (1% Rule) start with?
It opens with purchase price 250000 $ and monthly rent 2300 $ so you can see a working result straight away. Replace them with your own numbers, or press Reset to return to these starting values.
Is the Rent-to-Price Ratio Calculator (1% Rule) free and private?
Yes. It is free, needs no account, and runs in your browser, so nothing you type is sent to or stored on our servers. See the Privacy Policy for details.
Can I rely on the Rent-to-Price Ratio Calculator (1% Rule) for financial decisions?
Treat the result as a well-rounded estimate. Real situations often have details a general calculator cannot know, so confirm financial decisions with a qualified professional. See the Disclaimer for more.