Finance & Economics / Real Estate Investment
1% Rule / 2% Rule Rental Screening Calculator
Property Details
How to Use This Calculator
The 1% and 2% rules are quick screening tools to evaluate rental property deals. They help investors quickly identify properties that are likely to generate positive cash flow.
How it works:
- 1% Rule: Monthly rent should be at least 1% of the purchase price
- 2% Rule: Monthly rent should be at least 2% of the purchase price
- Higher ratios indicate better cash flow potential
- These are screening tools - always do full financial analysis
Important: These rules don't account for expenses, financing, taxes, or market conditions. Use them for initial screening, then conduct detailed cash flow analysis.
Use this 1% rule / 2% rule rental screening calculator to compute real estate investment results from your inputs.
Formula
Rent-to-price ratio = (Monthly rent / Purchase price) × 100 Meets 1% rule: Ratio ≥ 1% Meets 2% rule: Ratio ≥ 2%