Finance · Property Investment

Price-to-Rent Ratio Calculator

Compare a property purchase price with twelve months of market rent.

Loading calculator…

Feedback

Understand the property decision

What the Price-to-Rent Ratio Calculator is for

Compare a property purchase price with twelve months of market rent.

It keeps income, operating costs, financing, invested cash, value, timing, and exit assumptions explicit so you can reproduce the result and compare genuinely consistent scenarios.

Calculation structure

Keep income, costs, and value in the right period

Visual explanation

See what drives the property result

Read the result correctly

Use the result with its boundaries

A 360,000 property and 3,000 monthly market rent produce a 10× ratio.

This consumer-oriented screen uses monthly market rent and does not account for expenses, financing, growth, or transaction costs.

Quick guide

How to use this calculator

  1. Enter a single internally consistent property scenario.
  2. Use the field labels to preserve each page's specific investment, transaction, lease, development, or lodging convention.
  3. Review the calculator-specific boundary before interpreting the result.

Calculation method

Calculation method

Price-to-rent ratio = property price ÷ (monthly market rent × 12).

Entered fixed decimals use exact rational arithmetic except the explicitly approximate IRR root. Money rounds only for display and supported nonzero amounts remain visible.

Worked example

Worked example

A 360,000 property and 3,000 monthly market rent produce a 10× ratio.

Price-to-rent ratio = property price ÷ (monthly market rent × 12).

Supported inputs

Precision and limits

Visible input limits

Amounts accept up to 30 digits and 12 decimal places and are capped at 1e12 per input. Whole-number periods are capped at the page's stated range; rates are capped at 1000%.

International scope

No currency, tax regime, lease law, lender threshold, local market feed, appraisal, or jurisdiction-specific charge is assumed.

Decision boundary

Results are visitor-entered arithmetic scenarios, not appraisals, forecasts, loan approvals, legal or tax determinations, or investment recommendations.

Calculator-specific assumptions

This consumer-oriented screen uses monthly market rent and does not account for expenses, financing, growth, or transaction costs.