Fifty Percent Rule Estimate
Estimated annual cash flow assuming 50% of rent goes to expenses.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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View PricingFifty Percent Rule Estimate Formula
(Monthly Rent x 50% - Monthly Mortgage) x 12
What This Means
A sample property priced at $385,000 with $2,850/month rent has a fifty percent rule estimate of -$7,490 at Purchase (Month 0). The 50% rule gives you an instant cash flow estimate. If even this conservative estimate shows negative cash flow, the deal likely will not work. If positive, it warrants deeper analysis with actual expense numbers.
Where This Value Comes From
Fifty Percent Rule Estimate is not entered directly — it is calculated from Monthly Rent. See the formula breakdown above and the detailed inputs below.
Inputs That Determine Fifty Percent Rule Estimate
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
The 50% rule gives you an instant cash flow estimate. If even this conservative estimate shows negative cash flow, the deal likely will not work. If positive, it warrants deeper analysis with actual expense numbers.
Detailed Explanation
The 50% Rule estimates cash flow by assuming half of gross rent goes to operating expenses. This quick calculation provides a conservative cash flow estimate before detailed analysis.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Years Owned
UTime elapsed since the property was purchased, calculated from the purchase date to today.
Profit If Sold
UNet profit if sold today, based on actual years owned.
Return If Sold
UNet sale profit as a percentage of initial cash invested, based on actual years owned.
Total Cash to Close
UCash needed at the closing table to acquire the property.
Total Cash Invested
UTotal cash committed to the property: closing costs, rent-ready, reserves, and negative cash flow.
All-In Cost Per Unit
UTotal acquisition cost (including closing and rehab) per unit.
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