50% Rule Calculator

Quick rental property screening using the 50% rule. Estimate expenses as half of gross rent to project cash flow.

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Purchase Price
$
Monthly Rent
$
Pro Forma Rent
$
Down %
%
Rate %
%
As-Is EstimateCurrent
Pro Forma Estimate
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Est. Cash Flow
50% rule
Est. Expenses
/mo
Passes 50% Rule?
Rough CoC
estimate
50% Rule Calculation
Monthly Rent
50% Operating Expense Est.
Mortgage P&I
Estimated Cash Flow
After plan
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Pro Forma CF
at higher rent
Est. Expenses
/mo
Mortgage P&I
Pro Forma CoC
Pro Forma 50% Analysis
Pro Forma Rent
50% Expense Estimate
Mortgage
Cash Flow Estimate

The 50% rule estimates that operating expenses will be approximately 50% of gross rent — NOT including the mortgage. Enter rent and mortgage details to get a quick cash flow estimate.

The 50% Rule is a real estate investing heuristic: expect operating expenses (taxes, insurance, maintenance, vacancy, management) to equal roughly 50% of gross rent. Subtract the remaining 50% from mortgage payment to estimate cash flow. It's a quick screen, not a substitute for detailed analysis.