Calculate a property’s Rent-to-Value (RTV) ratio by comparing its total annual rental income to its purchase price. While some investors use the "1% Rule" for monthly screening, this Annual RTV calculator automatically annualizes the monthly rent and provides a clearer picture of the property’s gross annual yield.
Annual Rent-to-Value (RTV) Calculator
Result: Annual RTV: %
Please enter valid values for monthly rent and purchase price.
Breakdown of the Numbers
- Monthly Rent:
- Annual Rent (Monthly × 12):
- Purchase Price:
- Annual RTV: %
How to Interpret the Result
An annual RTV ratio of
%
helps you evaluate whether a property's income potential justifies its price.
Generally, an annual RTV above 8% - 10% is considered a
strong starting point for rental yield, though this varies
significantly by market and property type.
Note: RTV is a gross income metric and does
not account for operating expenses, taxes, or mortgage costs.