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.