# Price to Rent Ratio Calculator

**Price to Rent Ratio Calculator** to calculate the ratio of a real estate property to the amount of rent generated each month. The price-to-rent ratio calculator is helpful for landlords and real estate investors to evaluate the profitability of an investment.

## How to calculate the price-to-rent ratio?

The following is the price-to-rent ratio on how to calculate the price-to-rent ratio for an investment property.
Price to rent ratio = Property Value / Monthly Rent / 12
For example, if the value of a property is $500,000, it generates $4,500 in rent each month, below is how you would calculate the price-to-rent ratio for this property.
Price to rent ratio = 500,000/4,500/12
Price to rent ratio = 9.26%