1% Rule Calculator

Quickly evaluate if a rental property meets the 1% rule for positive cash flow

1% Rule Calculator

Quick screening tool to evaluate if a rental property meets the 1% rule

Property Details

Purchase Price?

Total purchase price or all-in cost of the property

$

Monthly Rent?

Expected or actual monthly rental income

$

What is the 1% Rule?

The 1% rule states that monthly rent should equal at least 1% of the purchase price. It's a quick screening tool to identify potentially profitable rental properties.

• 1% Rule: Good cash flow potential
• 2% Rule: Excellent cash flow (rare)
• 0.8-1%: May work in appreciation markets
• Below 0.8%: Likely poor cash flow

Analysis Results

Passes 1% Rule

Passes (1% Rule)

1.00%

Rent-to-Value

1% Target Monthly Rent?

Monthly rent needed to meet the 1% rule

$2,500

Exceeds by $0

2% Target Monthly Rent?

Monthly rent needed to meet the 2% rule (rare but excellent)

$5,000

For excellent cash flow

Gross Rental Yield?

Annual rent divided by purchase price

12.00%

Annual return

Recommendation

This property meets the 1% rule and is worth further analysis. Review expenses carefully to confirm positive cash flow.

Visual Comparison

Your Rent$2,500

1.00% of Purchase Price

1% Target$2,500

Ready to put your calculations to work?