1 Percent Rule Calculator

Calculate Minimum Monthly Rent

Formula

The formula to calculate the 1 Percent Rule (R) is:

\[ R = P \times 0.01 \]

Where:

Definitions

Example

Let's say the purchase price of the property is $200,000. Using the formula:

\[ R = 200000 \times 0.01 \]

We get:

\[ R = 2000 \]

So, the minimum monthly rent should be $2,000.

Extended information about "1-Percent-Rule-Calculator"

Rule of 1 Percent

Definition: The 1 percent rule is a guideline used by real estate investors to determine if a property is a good investment.

Formula: \( \text{Monthly Rent} \geq 0.01 \times \text{Purchase Price} \)

Example: \( \text{Monthly Rent} = 0.01 \times 200,000 \)

How to Calculate 1 Percent

Definition: Calculating 1 percent of a number involves multiplying the number by 0.01.

Formula: \( \text{1 Percent} = 0.01 \times \text{Number} \)

Example: \( \text{1 Percent} = 0.01 \times 500 \)

Calculate 1 Percent of a Number

Definition: To find 1 percent of a number, multiply the number by 0.01.

Formula: \( \text{1 Percent} = 0.01 \times \text{Number} \)

Example: \( \text{1 Percent} = 0.01 \times 750 \)