LandlordGauge

1% rule calculator for rental property

Compare price, rent and expenses with the 1% and 50% rules of thumb, and calculate the gross rent multiplier.

Three numbers to start

Positive purchase price in US dollars.

Scheduled gross rent before expenses; zero is allowed.

Exclude mortgage payments, depreciation and income tax. Use a consistent monthly operating-cost estimate.

Your result

Example result

1% rule: monthly rent / price

1.00%Rule of thumb: a screening comparison only

Meets the 1% rule of thumb. The 1% monthly rent benchmark is $2,000.

50% rule: monthly expense allowance

$1,000Rule of thumb: half of scheduled monthly rent

Your entered expenses are $200 below that allowance.

Gross rent multiplier

8.33×Rule of thumb: price ÷ annual gross rent

The ratios compare price, rent and entered expenses; they do not establish profit or property quality.

Example figures.

Rates as of