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Real Estate Calculators

Price to Rent Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

Price to rent ratio

20.00

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

How to use the Price to Rent Ratio Calculator

The Price to Rent Ratio Calculator works out your price to rent ratio in an instant. Enter property price and annual rent 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 price.
  2. Enter the annual rent.
  3. Read off your price to rent ratio — the calculator updates automatically, with no button to press.

Formula

The Price to Rent Ratio Calculator uses the formula:

Price to rent ratio = Property price ÷ Annual rent

Worked example

For example, with property price of 5,000,000 and annual rent of 250,000, the price to rent ratio is 20.00.

Inputs used
Property price 5,000,000
Annual rent 250,000
Results
Price to rent ratio 20.00

Results are estimates for educational use, not professional advice.

Key terms explained

Ratio
A comparison of two quantities showing how many times one contains the other.

Frequently asked questions

It is the property price divided by annual rent. A 5,000,000 home renting for 250,000 a year has a ratio of 20.

A lower ratio (under about 15) often favours buying; a higher ratio (over about 21) often favours renting.

It gives a quick read on whether a market is priced more for buyers or renters.

It ignores interest rates, taxes, maintenance and appreciation, so use it alongside a fuller analysis.

The Price to Rent Ratio Calculator uses the formula: Price to rent ratio = Property price ÷ Annual rent. For example, with property price of 5,000,000 and annual rent of 250,000, the price to rent ratio is 20.00.

Enter the property price. Enter the annual rent. Read off your price to rent ratio — the calculator updates automatically, with no button to press.

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