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Real Estate Calculators

1% Rule Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
Verified formula Private

Target monthly rent (1%)

₹50,000

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the 1% Rule Calculator

The 1% Rule Calculator works out your target monthly rent (1%) in an instant. Enter property purchase price and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the property purchase price.
  2. Read off your target monthly rent (1%) — the calculator updates automatically, with no button to press.

Formula

The 1% Rule Calculator uses the formula:

Target monthly rent (1%) = Property purchase price × 0.01

Worked example

For example, with property purchase price of ₹5,000,000, the target monthly rent (1%) is ₹50,000.

Inputs used
Property purchase price ₹5,000,000
Results
Target monthly rent (1%) ₹50,000

Results are estimates for educational use, not professional advice.

Frequently asked questions

It says a rental should earn monthly rent of at least 1% of its purchase price. A 50,00,000 property should rent for about 50,000 a month.

It is a quick screening test. Properties that meet or beat 1% are worth deeper analysis; those well below it often have weak cash flow.

Not everywhere. In high-price markets, rents rarely reach 1%, so investors there rely more on appreciation than cash flow.

No. It is only a starting filter. Use full cash-flow, cap-rate and expense analysis before buying.

The 1% Rule Calculator uses the formula: Target monthly rent (1%) = Property purchase price × 0.01. For example, with property purchase price of ₹5,000,000, the target monthly rent (1%) is ₹50,000.

Enter the property purchase price. Read off your target monthly rent (1%) — the calculator updates automatically, with no button to press.

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