Real Estate

Rental Vacancy Loss Calculator

Effective gross income after vacancy allowance.

Enter your values

ⓘ Live results

Results
Potential annual rent
$24,000.00
Vacancy loss
$1,680.00
Effective gross income
$22,320.00
Effective monthly income
$1,860.00

Quick answer

Effective gross income is potential rent reduced by an expected vacancy and credit loss rate, typically 5-10% depending on the market.

EGI = potential rent x (1 - vacancy rate)

How to use the Rental Vacancy Loss Calculator

  1. 1Enter monthly rent per unit and the number of units.
  2. 2Enter a realistic vacancy rate for your market (check comparable properties).
  3. 3Use the effective gross income figure in your cap rate or cash flow analysis.

Worked example

Using the values the calculator loads with:

Inputs

  • Monthly potential rent2000 $
  • Number of units1
  • Vacancy rate7 %

Results

  • Potential annual rent$24,000.00
  • Vacancy loss$1,680.00
  • Effective gross income$22,320.00
  • Effective monthly income$1,860.00

Frequently asked questions

What's a typical vacancy rate?

Often 5-10% in stable markets, but can be higher in seasonal or oversupplied areas.

Does this include bad debt?

You can bundle a credit loss allowance into the same vacancy rate for underwriting purposes.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.