{
  "slug": "one-percent-rule",
  "title": "1% Rule Calculator",
  "heading": "1% Rule Rental Screening Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/one-percent-rule",
  "summary": "Quick screen: does monthly rent hit 1% of the purchase price?",
  "description": "The 1% rule is a screening heuristic, not an analysis. It filters out obvious losers in seconds, but in high-appreciation markets almost nothing passes and the rule stops being useful.",
  "formula": "Rent-to-price = Monthly rent ÷ Purchase price × 100.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=one-percent-rule",
  "inputs": [
    {
      "id": "price",
      "label": "Purchase price",
      "kind": "number",
      "hint": null,
      "default": 300000,
      "unit": "$",
      "min": 1,
      "max": null
    },
    {
      "id": "rehab",
      "label": "Rehab budget",
      "kind": "number",
      "hint": null,
      "default": 15000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rent",
      "label": "Expected monthly rent",
      "kind": "number",
      "hint": null,
      "default": 2400,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "ratio",
      "label": "Rent-to-price ratio",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "needed1",
      "label": "Rent needed to hit the 1% rule",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "needed2",
      "label": "Rent needed for the 2% rule",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "maxPrice",
      "label": "Max price that passes at this rent",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "grm",
      "label": "Gross rent multiplier",
      "format": "decimal",
      "hint": null,
      "primary": false
    },
    {
      "id": "annualRent",
      "label": "Annual gross rent",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Purchase price: 300000 $",
      "Rehab budget: 15000 $",
      "Expected monthly rent: 2400 $"
    ],
    "outputs": [
      "Rent-to-price ratio: 0.762%",
      "Rent needed to hit the 1% rule: $3,150.00",
      "Rent needed for the 2% rule: $6,300.00",
      "Max price that passes at this rent: $225,000.00",
      "Gross rent multiplier: 10.94",
      "Annual gross rent: $28,800.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter purchase price ($).",
      "Enter rehab budget ($).",
      "Enter expected monthly rent ($).",
      "Read your rent-to-price ratio on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "price": 180000,
        "rehab": 9000,
        "rent": 1450
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "price": 300000,
        "rehab": 15000,
        "rent": 2400
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "price": 480000,
        "rehab": 24000,
        "rent": 3850
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the 1% rule rental screening calculator work?",
      "a": "The 1% rule is a screening heuristic, not an analysis. It filters out obvious losers in seconds, but in high-appreciation markets almost nothing passes and the rule stops being useful. The underlying maths is: Rent-to-price = Monthly rent ÷ Purchase price × 100."
    },
    {
      "q": "What do I need to enter?",
      "a": "3 values: purchase price, rehab budget, and expected monthly rent. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the rent-to-price ratio result mean?",
      "a": "It is returned as a percentage and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/cap-rate",
    "https://www.revenuelab.fyi/toolbox/rental-cash-flow"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — 1% Rule Calculator (https://www.revenuelab.fyi/toolbox/one-percent-rule)"
}