---
title: "Price to rent ratio calculator"
description: "Price-to-rent ratio (price divided by annual rent) and 5% rule educational screen."
htmlPath: "/price-to-rent"
tool: "price-to-rent"
keywords:
  - "price to rent ratio calculator"
  - "5% rule rent vs buy"
---

# Price to rent ratio calculator

- **URL:** https://financeflow.studio/price-to-rent  
- **Markdown:** https://financeflow.studio/ai/price-to-rent.md  
- **Primary keywords:** price to rent ratio calculator; 5% rule rent vs buy  

## Summary

Fast educational **screen**: **price-to-rent ratio = home price ÷ (monthly rent × 12)**. Also shows rent as % of price, simplified interpretation bands, and a **5% rule** ownership-cost proxy (~0.5% of price per month vs rent). Deep-links to full rent vs buy with `?price=` and `?rent=` prefilled. **Not** a full net-worth model.

## Inputs

- Home price  
- Monthly rent  

## Outputs

- Price-to-rent ratio (1 decimal)  
- Annual rent; rent-to-price %  
- Educational band (buy-lean / mixed / rent-lean) with heavy caveats  
- 5% rule monthly and annual proxy vs rent  
- CTA URL to rent vs buy with query params  

## Interpretation bands (educational only)

Rough heuristics (cutoffs vary by source/market):

- Lower ratios (e.g. under ~15–20): often described as more buy-leaning on this crude screen  
- ~20–25: mixed  
- Higher (e.g. above ~25): often described as more rent-leaning  

Ignores financing, taxes, opportunity cost, appreciation, and stay length.

## FAQs

### What is the price to rent ratio?

Home price ÷ annual rent (monthly × 12). Crude market/property screen only.

### How do you calculate it?

Annual rent = monthly rent × 12; ratio = price / annual rent.

### What is a “good” ratio?

No universal good. Use bands as conversation starters; confirm with full rent vs buy.

### What is the 5% rule?

Rough idea that annual ownership costs ≈ 5% of price (~0.5%/month). Compare to rent. Not accurate ownership cost.

### Should I use this instead of rent vs buy?

No for a personal decision. Use this as a screen; use rent vs buy for horizon, break-even, and opportunity cost.

### Are results advice?

No.

## Related tools

- Rent vs buy: https://financeflow.studio/rent-vs-buy — [rent-vs-buy.md](https://financeflow.studio/ai/rent-vs-buy.md)  
- Average rent by state: https://financeflow.studio/average-rent-by-state — [average-rent-by-state.md](https://financeflow.studio/ai/average-rent-by-state.md)  
- Average home cost by state: https://financeflow.studio/average-home-cost-by-state — [average-home-cost-by-state.md](https://financeflow.studio/ai/average-home-cost-by-state.md)  

## Disclaimer

Educational estimates only—not advice.