Rental property

One Percent Rule Calculator

Compare monthly rent with acquisition cost. Replace every default with figures that apply to your property and location.

What this calculator estimates

Compare monthly rent with acquisition cost. It combines the inputs below to produce Monthly rent as a percentage. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.

Worked example

Using the displayed sample assumptions, the calculator produces 0.93%. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.

Inputs and assumptions

• Purchase price — sample input: 350000 currency units
• Immediate repairs — optional — sample input: 25000 currency units
• Monthly rent — sample input: 3500 currency units

How to interpret the result

Review cash flow together with reserves, vacancy and financing risk. Compare a conservative case with an expected case and keep a record of the assumptions used.

Common mistake to avoid

Do not treat gross rent as net operating income. Local definitions, taxes, lending practices and measurement requirements can materially change the result.

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Reviewed 2026-09-08.