Think it depends on how heavy/thick your quilt is, so as to be able to wrap a narrow binding around it and make it pretty easy for you to sew down. Not thick or heavy, I wouldn't hesitate to use a 2 inch binding, and are you saying it will be 1 inch after folding? So you are down to 1/2 inch on top and back side, and that doesn't include taking away 1/4 inch on each side for seam allowance. Try on a sample, is the best advice, I would say.