Free calculator, runs in your browser

Landlord Rent Calculator
How Much Rent to Charge to Cover Costs

Enter what the property costs you each month and the cash flow you want. See the rent you need to charge, the break-even rent and a 1% rule check, then compare it with what similar rentals near you ask.

Use the calculator See SealedFolio's two plans
Fixed costs per month
Share of rent kept after vacancy, maintenance and management
Break-even rent
Rent needed for your target
1% rule rent

Rent needed = (fixed costs + target cash flow) divided by (1 minus vacancy, maintenance and management). It does not include income tax or capital spending such as a new roof.

Worked example: a $300,000 rental

Diagram of the rent calculation for a 300,000 dollar rental: 1,942 dollars of fixed monthly costs plus a 250 dollar cash flow target, divided by 0.87 after 5 percent vacancy and 8 percent maintenance, gives a 2,520 dollar rent, against a 3,000 dollar 1 percent rule figure
Rent needed for 250 dollars a month of cash flow. Diagram by SealedFolio.
  1. Fixed costs. A $240,000 loan at 6.5% over 30 years is $1,517 a month. Property tax of $3,600 a year is $300 a month and insurance of $1,500 a year is $125. Fixed costs are $1,942.
  2. Share of rent kept. 5% vacancy and 8% maintenance, self-managed, leave 87% of rent, or 0.87.
  3. Break-even rent. $1,942 divided by 0.87 is $2,232.
  4. Rent for $250 a month of cash flow. $2,192 divided by 0.87 is $2,520.
  5. 1% rule. 1% of $300,000 is $3,000, so this home misses the rule of thumb by $480 but still cash flows at $2,520.

The next step is the market. If similar homes nearby rent for $2,400, the $250 target is out of reach and the realistic cash flow is about $146 a month: $2,400 times 0.87 is $2,088, minus $1,942. If they rent for $2,700, you can charge market and beat the target.

Once the rent is set, the rental income calculator shows gross, net and NOI, and the cash flow calculator runs the full monthly picture.

Where the percentages come from

Vacancy of 5% is about two and a half weeks empty a year. A home that turns over every year with a month to re-let is closer to 8%. Maintenance of 8% to 10% of rent is a common allowance for an older single-family home; newer homes often run lower. Full-service management usually charges 8% to 12% of collected rent, plus leasing fees.

After a year of owning the property, replace these guesses with your own figures. That is what your books are for.

Where SealedFolio fits

SealedFolio records the actual rent, vacancy periods, repairs and mortgage payments for each property, so next year's rent decision uses real numbers instead of percentages. It runs on your own Mac or Windows PC in an encrypted vault. For the rest of a landlord's setup, see SealedFolio for landlords, and for more free tools, the calculator index.

Set next year's rent from your real costs

SealedFolio Pro is $19 a month or $179 a year for up to 3 properties. Portfolio is $39 a month or $297 a year for unlimited properties. Both come with a 30-day money-back guarantee.

See SealedFolio pricing

Landlord rent calculator: frequently asked questions

How do I calculate how much rent to charge?

Add up the fixed monthly costs (mortgage payment, property tax, insurance and HOA), add the monthly cash flow you want, then divide by one minus the share of rent you lose to vacancy, maintenance and management. That gives the rent that covers everything. Then check it against what similar rentals near you actually charge.

What is the 1% rule for rent?

A rule of thumb that monthly rent should be about 1% of the purchase price, so $3,000 a month on a $300,000 home. Few markets meet it today, so treat it as a quick screen, not a price.

What is break-even rent?

The rent that covers every cost with zero cash flow left over. Set the target cash flow to $0 in the calculator to see it.

Can I charge more than market rent?

You can ask for it, but tenants compare listings, and a rent above similar homes nearby usually means a longer vacancy. If the rent you need is above market, the numbers say the purchase price or financing is the problem, not the rent.