Gross Rental Income Calculator

✖Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.ⓘ Property Value [PV]			+10% -10%
✖Gross Rent Multiplier is a real estate metric used to estimate the value of a property based on its gross rental income relative to its sale price.ⓘ Gross Rent Multiplier [GRM]			+10% -10%

✖Potential Gross Rental Income refers to the total revenue a property could generate if all units were rented at their maximum achievable rental rates, without factoring in collection losses.ⓘ Gross Rental Income [GRI]

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Formula

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Gross Rental Income

Formula

`"GRI" = "PV"/"GRM"`

Example

`"23228.89"="418120"/"18"`

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Gross Rental Income Solution

STEP 0: Pre-Calculation Summary

Formula Used

Potential Gross Rental Income = Property Value/Gross Rent Multiplier
GRI = PV/GRM
This formula uses 3 Variables

Variables Used

Potential Gross Rental Income - Potential Gross Rental Income refers to the total revenue a property could generate if all units were rented at their maximum achievable rental rates, without factoring in collection losses.
Property Value - Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.
Gross Rent Multiplier - Gross Rent Multiplier is a real estate metric used to estimate the value of a property based on its gross rental income relative to its sale price.

STEP 1: Convert Input(s) to Base Unit

Property Value: 418120 --> No Conversion Required
Gross Rent Multiplier: 18 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

GRI = PV/GRM --> 418120/18

Evaluating ... ...

GRI = 23228.8888888889

STEP 3: Convert Result to Output's Unit

23228.8888888889 --> No Conversion Required

FINAL ANSWER

23228.8888888889 ≈ 23228.89 <-- Potential Gross Rental Income

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 20 Mortgage and Real Estate Calculators

Long Term Capital Gain

Go Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer

Short Term Capital Gain

Go Short Term Capital Gain = Final Sale Price-Cost of Acquisition-Home Improvement Cost-Cost of Transfer

Effective Gross Income

Go Effective Gross Income = Potential Gross Rental Income+Other Income-Allowances for Vacancies and Bad Debts

Net Rental Yield

Go Net Rental Yield = ((Annual Rental Income-Annual Expenses)*(1/Property Value))*100

Cost Approach Appraisal

Go Property Value = Reproduction Cost-Depreciation+Value of Land

Gross Potential Rent

Go Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent

Qualifying Ratio

Go Debt to Income Ratio = (Total Monthly Debt Payments/Gross Monthly Income)*100

Vacancy Rate

Go Vacancy Rate = (Vacant Units in the Building*100)/Total Units in the Building

Equity Build up Rate

Go Equity Build Up Rate = Year One Equity Build Up/Year Capital Expenses

Gross Income Multiplier

Go Gross Income Multiplier = Property Sale Price/Effective Gross Income

Gross Rental Income

Go Potential Gross Rental Income = Property Value/Gross Rent Multiplier

Cash on Cash Return

Go Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100

Net Operating Income

Go Net Operating Income = Total Property Revenue-Operating Expenses

Gross Rental Yield

Go Gross Rental Yield = (Annual Rental Income/Property Value)*100

Down-Payment Amount

Go Down Payment Amount = Final Sale Price*Percentage Payment

Rent to Cost Ratio

Go Rent to Cost Ratio = Monthly Rental Income/Property Value

Assessed Value

Go Assessed Value = Assessment Market*Market Value

Property Tax Rate

Go Property Tax Rate = Assessed Value*Mill Rate

Annual Rental Income

Go Annual Rental Income = Monthly Rental Income*12

1 Percent Rule

Go Minimum Monthly Rent = 0.01*Purchase Price

Gross Rental Income Formula

Potential Gross Rental Income = Property Value/Gross Rent Multiplier
GRI = PV/GRM

What is Gross Rental Income ?

Gross Rental Income is the cumulative income generated from renting out a property without considering any deductions or expenses. It encompasses the total revenue received from all sources related to rental activities within the property, including residential units, commercial spaces, parking facilities, and any additional lease-related income. Gross Rental Income is a fundamental metric used by property owners, landlords, and real estate investors to evaluate the revenue-generating capacity of a property. It serves as a primary indicator of the property's financial health and potential profitability, providing insights into its overall income stream before factoring in operational costs and other expenditures. By analyzing Gross Rental Income, stakeholders can make informed decisions regarding pricing strategies, investment opportunities, and portfolio management, helping them optimize rental yields and maximize returns on their real estate investments.

How to Calculate Gross Rental Income?

Gross Rental Income calculator uses Potential Gross Rental Income = Property Value/Gross Rent Multiplier to calculate the Potential Gross Rental Income, The Gross Rental Income is the total revenue generated from renting out a property before deducting any expenses. Potential Gross Rental Income is denoted by GRI symbol.

How to calculate Gross Rental Income using this online calculator? To use this online calculator for Gross Rental Income, enter Property Value (PV) & Gross Rent Multiplier (GRM) and hit the calculate button. Here is how the Gross Rental Income calculation can be explained with given input values -> 23228.89 = 418120/18.

FAQ

What is Gross Rental Income?

The Gross Rental Income is the total revenue generated from renting out a property before deducting any expenses and is represented as GRI = PV/GRM or Potential Gross Rental Income = Property Value/Gross Rent Multiplier. Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time & Gross Rent Multiplier is a real estate metric used to estimate the value of a property based on its gross rental income relative to its sale price.

How to calculate Gross Rental Income?

The Gross Rental Income is the total revenue generated from renting out a property before deducting any expenses is calculated using Potential Gross Rental Income = Property Value/Gross Rent Multiplier. To calculate Gross Rental Income, you need Property Value (PV) & Gross Rent Multiplier (GRM). With our tool, you need to enter the respective value for Property Value & Gross Rent Multiplier and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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