1% 50% 70% Rule Calculator
Run the three classic real-estate rules of thumb at once, the 1% rent rule, the 50% expense rule, and the 70% maximum-offer rule for flips. Calculates instantly in your browser.
1% rule
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Show the math
Three quick rules of thumb for screening rentals and flips:
1% rule: monthly rent ≥ price × 1%
50% rule: operating expenses ≈ rent × 50%
70% rule: max offer = ARV × 70% − repairs
These are screening heuristics, not guarantees) always run the full numbers (cap rate, cash flow) before committing. All math runs locally in your browser.
What this does
This calculator runs the three classic real-estate rules of thumb at once, the 1% rent rule, the 50% expense rule, and the 70% maximum-offer rule for flips.
How it works
The 1% rule targets monthly rent of at least 1% of price; the 50% rule estimates operating expenses at half of rent; the 70% rule caps a flip offer at 70% of after-repair value minus repairs.
How to use it
- Enter the purchase price and rent.
- Enter the after-repair value and repair cost.
- Read each rule’s result.
- See whether your numbers pass.
Understanding your result
These are screening heuristics, not guarantees. Always run the full numbers before committing to a deal.
Example
On a $200,000 home the 1% rule targets $2,000 of monthly rent.
Sources & methodology
Last updated .
Frequently asked questions
What is the 1% rule?
It suggests a rental’s monthly rent should be at least 1% of the purchase price. The tool shows the target rent and whether your numbers pass.
What is the 50% rule?
A rough estimate that operating expenses (excluding the mortgage) run about half of rental income, useful for a quick NOI sanity check.
What is the 70% rule?
For flips, it caps your offer at 70% of the after-repair value minus estimated repairs, leaving room for profit and costs.
Are these rules reliable?
They are screening heuristics, not guarantees. Always run the full numbers before committing. Everything is calculated locally in your browser.
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