Real Estate Investing Calculators
The 1% rule check.
The 1% rule is a screening rule of thumb: monthly rent should be at least 1% of the purchase price. Enter the price and expected rent below to see the ratio, the rent you would need to hit 1% (or your own target) and the highest price that passes. Runs in your browser; nothing is sent or stored.
Your numbers
Result
Fill the form and press Calculate.
Not financial advice. This is an estimating tool built on the numbers you enter. Real estate returns depend on assumptions that can be wrong; check them with a lender, an accountant and local sources before you buy.
Worked example
Price $250,000 plus $20,000 of repairs is $270,000.00. Rent of $2,200 a month is 0.81% of that, so it does not meet 1%. Hitting 1% would take $2,700.00 a month, $500.00 more than expected. At $2,200 rent the most you could pay all-in is $220,000.00, a purchase price of $200,000.00.
How it works
Ratio = monthly rent / (purchase price + up-front repairs) x 100. Rent needed = all-in cost x target%. Maximum all-in cost = monthly rent / target%, and maximum purchase price = that amount minus repairs. This is a screen on rent and price only; it does not model taxes, insurance, vacancy or financing.
Sources and basis
BiggerPockets calls the 1% rule a rule of thumb built on the rent-to-price ratio (rent divided by price) and argues it is an outdated benchmark, suggesting that for a specific deal a ratio over about 0.65% may be worth a full analysis. Use the target field to apply whichever threshold you prefer.
- Is the 1% Rule Dead? Yep. Here’s Why (BiggerPockets, Dave Meyer), opened 2026-10-08.
FAQ
What is the 1% rule in real estate?
A rule of thumb that monthly rent should be at least 1% of the purchase price. A $200,000 property would need $2,000 a month.
Is the 1% rule a reliable test?
Treat it as a quick screen only. BiggerPockets calls it a rule of thumb that has become harder to meet and says it is not a law; run a full cash-flow analysis on any deal that interests you.
What is the 2% rule?
The same idea with a 2% target. Type 2 in the target box to test it; it is stricter and rarely met outside low-priced markets.
Should repairs count in the price?
This calculator adds them, since they are part of what you pay to make the property rentable. In the example that moves the ratio from 0.88% to 0.81%.
Does passing the 1% rule mean positive cash flow?
No. Taxes, insurance, vacancy, repairs and the mortgage rate all matter. Use the cash-on-cash calculator for a real cash-flow estimate.