Rent to Price Ratio Calculator
See the yearly rent as a percent of the price. Enter the price and the monthly rent to get the ratio.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
The ratio is the rent for a full year divided by the price, shown as a percent. A higher percent means more rent for each unit of price.
The ratio does not include costs, vacancies or financing. Use it to compare similar properties, not as a full measure of return.
Worked example
A property priced at $300,000.00 that rents for $2,500.00 a month, or $30,000.00 a year, has a rent to price ratio of 10%.
Questions
Is this the same as a cap rate?
No. A cap rate uses income after running costs. This ratio uses rent before costs, so it reads higher.
What is a good ratio?
It depends on the market and on interest rates. Compare it with similar properties nearby.
Why show a percent?
A percent makes two properties easy to compare at a glance.
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