Rental Income Calculator
Project monthly, annual, and multi-period gross and vacancy-adjusted rental income across single-family or multi-unit properties, including ancillary property revenue.
Units, Monthly Rent & Vacancy Allowance
Effective Monthly Income: $7,220.00/mo
Effective Gross Rental Income Formula
Monthly Gross Potential = (Monthly Rent ร Units) + Other Monthly Income | Vacancy-Adjusted Income = Gross Potential ร (1 โ Vacancy Allowance %)- Monthly Scheduled Rent = Monthly Rent per Unit ร Number of Rental Units.
- Monthly Vacancy Loss = Monthly Gross Potential Income ร (Vacancy Allowance % รท 100).
- Annual Vacancy-Adjusted Income = Monthly Vacancy-Adjusted Income ร 12.
Step-by-Step Worked Example
Calculation Steps:
- Monthly Gross Potential Income = $7,400 + $200 = $7,600/month ($91,200/year)
- Monthly Vacancy Loss (5%) = $7,600 ร 0.05 = $380/month
- Vacancy-Adjusted Income = $7,220/month ($86,640/year)
How to Use This Calculator
- 1Enter the average monthly rent per unit and the number of rental units.
- 2Input your expected vacancy and credit loss percentage (commonly 5% to 8%).
- 3Add any ancillary monthly property income (parking, storage, pet rent, laundry) and select your projection period in months.
Assumptions & Limitations
- Applies the vacancy allowance across total gross potential income.
- Use the Rental Property Cash Flow Calculator to subtract operating expenses and mortgage debt service.
Frequently Asked Questions
Why should I include a vacancy allowance if my property is currently 100% occupied?
Even well-managed properties experience periodic tenant turnover, make-ready days between leases, or occasional late/uncollected rent. Underwriting a 5% to 8% vacancy allowance prevents overestimating long-term cash flow.
What counts as Other Monthly Property Income?
Include recurring non-lease revenue such as coin/card laundry machines, reserved parking spaces, storage lockers, pet rent, and RUBS utility reimbursements.
Related Cost Calculators
Rental Yield Calculator
Calculate Gross Rental Yield and Net Rental Yield percentages plus annual net rental income from property price and monthly rent.
Rental Property Cash Flow Calculator
Calculate monthly and annual net rental cash flow and Net Operating Income (NOI) after vacancy, operating expenses, and mortgage debt service.
Property Management Fee Calculator
Calculate monthly and annual property management fees, tenant placement charges, and effective management cost as a percentage of rent.
Vacancy Rate Calculator
Calculate rental vacancy rate percentage, occupancy rate, and estimated lost rental revenue by vacant days or vacant units.