🏢 Real Estate Calculator
A quick screen of any rental property starts with three numbers: the monthly cash left after expenses, the cap rate (annual net income divided by price), and the 1% rule, which asks whether monthly rent is at least 1% of the purchase price.
This is a cash-flow screen, not a full investment plan. Financing costs, taxes, vacancies and appreciation are handled in the dedicated rental property calculator.
How to use this calculator
Enter the property price, expected monthly rent and monthly expenses to see the cash flow, cap rate and whether the property meets the 1% rule.
- Type the Property price you would pay.
- Enter the Monthly rent you expect to collect.
- Add the Monthly expenses for tax, insurance, maintenance and management.
- Press Calculate to see the cash flow, cap rate and 1% rule check.
Frequently asked questions
What do the results mean?
Monthly cash flow is rent minus expenses. The cap rate is the annual net income as a percent of the price. The 1% rule checks whether monthly rent is at least 1% of the price.
What is a good cap rate?
It depends on the market, but many investors look for 6 to 10 percent on a simple screen like this. Higher usually means higher risk or a cheaper area.
Can you walk through an example?
A $200,000 property renting for $2,000 with $800 of monthly expenses gives $1,200 a month of cash flow, a 7.2% cap rate, and exactly 1.0% on the rent-to-price check, so it meets the 1% rule.
Does this include the mortgage?
No. This is a cash purchase screen. To include financing, vacancy and down payment effects, use the rental property calculator.