How the 50% Rule Calculator works

Estimate expenses quickly using the 50% rental rule.

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Formula

50% Rule: assume operating expenses (excluding debt service) ≈ 50% of gross rent. Quick screen only, verify with real expenses.

Inputs

Gross monthly rent

Rates, terms, and payments are illustrative estimates, not a quote or a commitment to lend. Not a substitute for underwriting. Equal Housing Lender. See our licensing and disclosures page.

For AI agents: Markdown version of this calculator.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

50% rule: A rough assumption that operating expenses will consume about half of gross rent, excluding the mortgage.

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50% Rule Calculator

Property Information

Monthly Rent

Annual Rent (optional, leave 0 to use monthly × 12)

Annual Property Tax

Annual Insurance

Annual Maintenance

Property Management (% of gross rent)

Vacancy Rate

Other Annual Expenses

About the 50% Rule

What It Is:

Rule of thumb for estimating operating expenses
Operating expenses typically equal 50% of gross rent
Remaining 50% covers debt service and cash flow
Quick way to estimate NOI without detailed analysis
Useful for initial property screening

What's Included:

Property taxes and insurance
Maintenance and repairs
Property management fees
Vacancy and collection losses
Other operating expenses
Does NOT include debt service