1% Rule Calculator
Does monthly rent clear 1% of purchase price? The classic cash-flow screen with the rate-era caveat built in.
Formula
The 1% rule was calibrated to 4-5% mortgage money; at 7%+ even 1% deals can be cash-flow-thin, and coastal markets haven't seen 1% in a decade. It remains the right 10-second filter — survivors earn a real pro-forma, not a purchase.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need 1% rule calculator results fast? Analysts, founders, traders and finance professionals use the 1% Rule Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About 1% Rule Calculator
Does monthly rent clear 1% of purchase price? The classic cash-flow screen with the rate-era caveat built in. The 1% rule was calibrated to 4-5% mortgage money; at 7%+ even 1% deals can be cash-flow-thin, and coastal markets haven't seen 1% in a decade. It remains the right 10-second filter — survivors earn a real pro-forma, not a purchase. The governing relationship is ratio = monthly rent / price. The 1% Rule Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use 1% Rule Calculator
- 1Enter Purchase price (incl. rehab) (currency), Monthly rent (currency) into the 1% Rule Calculator.
- 2The result is computed automatically using ratio = monthly rent / price — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use 1% Rule Calculator?
- ✓Computes 1% rule calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the 1% Rule Calculator?+
1% Rule Calculator uses ratio = monthly rent / price. The 1% rule was calibrated to 4-5% mortgage money; at 7%+ even 1% deals can be cash-flow-thin, and coastal markets haven't seen 1% in a decade. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the 1% Rule Calculator need?+
Enter Purchase price (incl. rehab) (currency), Monthly rent (currency) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the 1% Rule Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the 1% Rule Calculator?+
It remains the right 10-second filter — survivors earn a real pro-forma, not a purchase.
What is the 1% Rule Calculator based on?+
The method follows authoritative sources: Rental screening heuristics. The formula and references are shown on the page so you can verify and cite the result.
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