Gross Potential Rent Calculator

✖Number of Units Available for Rent efers to the total count of residential or commercial spaces that are currently vacant and ready for occupancy.ⓘ Number of Units Available for Rent [U]			+10% -10%
✖Annualised Market Rent is the estimated yearly rental income a property would generate if leased at prevailing market rates.ⓘ Annualised Market Rent [MR_annualised]			+10% -10%

✖Gross Potential Rent represents the maximum potential rental income a property could generate if fully leased at market rates.ⓘ Gross Potential Rent [GPR]

⎘ Copy

👎

Formula

✖

Gross Potential Rent

Formula

`"GPR" = "U"*"MR"_{"annualised"}`

Example

`"900000"="20"*"45000"`

Calculator

LaTeX

Reset

👍

Gross Potential Rent Solution

STEP 0: Pre-Calculation Summary

Formula Used

Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent
GPR = U*MR_annualised
This formula uses 3 Variables

Variables Used

Gross Potential Rent - Gross Potential Rent represents the maximum potential rental income a property could generate if fully leased at market rates.
Number of Units Available for Rent - Number of Units Available for Rent efers to the total count of residential or commercial spaces that are currently vacant and ready for occupancy.
Annualised Market Rent - Annualised Market Rent is the estimated yearly rental income a property would generate if leased at prevailing market rates.

STEP 1: Convert Input(s) to Base Unit

Number of Units Available for Rent: 20 --> No Conversion Required
Annualised Market Rent: 45000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

GPR = U*MR_annualised --> 20*45000

Evaluating ... ...

GPR = 900000

STEP 3: Convert Result to Output's Unit

900000 --> No Conversion Required

FINAL ANSWER

900000 <-- Gross Potential Rent

(Calculation completed in 00.005 seconds)

You are here -

Home » Financial » Mortgage and Real Estate » Gross Potential Rent

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 Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 10+ more calculators!

< 25 Mortgage and Real Estate Calculators

Monthly Mortgage Payment

Go Monthly Payment = (Mortgage Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1)

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

70 Percent Rule

Go Maximum Buying Price = (After Repair Value*0.7)-Estimated Repair Costs

Gross Income Multiplier

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

Gross Rent Multiplier

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

Gross Rental Income

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

Loan to Value Ratio

Go Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100

Price per Square Foot

Go Price per Square Foot = Property Sale Price/Total Square Footage

Gross Rental Yield

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

Price to Rent Ratio

Go Price to Rent Ratio = Median Home Price/Median Annual Rent

Down-Payment Amount

Go Down Payment Amount = Final Sale Price*Percentage Payment

Rental Yield

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

Land to Building Ratio

Go Land to Building Ratio = Area of Land/Area of Building

Commission Value

Go Commission Value = Commission Rate*Final Sale Price

Floor Area Ratio

Go Floor Area Ratio = Gross Floor Area/Total Lot Size

Property Tax Rate

Go Property Tax Rate = Assessed Value*Mill Rate

Debt Ratio

Go Debt Ratio = Total Debt/Total Assets

Annual Rental Income

Go Annual Rental Income = Monthly Rental Income*12

Gross Potential Rent Formula

Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent
GPR = U*MR_annualised

What is Gross Potential Rent ?

Gross Potential Rent (GPR) is a fundamental concept in real estate that refers to the maximum potential rental income a property could generate under ideal conditions. This figure assumes that all rental units or spaces within the property are fully occupied and leased at market rates, without any vacancies or rental concessions. Essentially, GPR represents the theoretical upper limit of rental income that a property could achieve within a given period, typically on an annual basis. Calculating Gross Potential Rent involves multiplying the total number of rental units or leasable spaces by the market rental rate for each unit, then summing these amounts to arrive at the total potential income. Property owners and investors often use GPR as a key metric to assess the revenue-generating capacity of a property and evaluate its investment potential. However, it's important to note that GPR is a theoretical figure and may not always be realized due to factors such as vacancies, market fluctuations.

How to Calculate Gross Potential Rent?

Gross Potential Rent calculator uses Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent to calculate the Gross Potential Rent, The Gross Potential Rent represents the maximum potential rental income a property could generate if fully leased at market rates. Gross Potential Rent is denoted by GPR symbol.

How to calculate Gross Potential Rent using this online calculator? To use this online calculator for Gross Potential Rent, enter Number of Units Available for Rent (U) & Annualised Market Rent (MR_annualised) and hit the calculate button. Here is how the Gross Potential Rent calculation can be explained with given input values -> 900000 = 20*45000.

FAQ

What is Gross Potential Rent?

The Gross Potential Rent represents the maximum potential rental income a property could generate if fully leased at market rates and is represented as GPR = U*MR_annualised or Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent. Number of Units Available for Rent efers to the total count of residential or commercial spaces that are currently vacant and ready for occupancy & Annualised Market Rent is the estimated yearly rental income a property would generate if leased at prevailing market rates.

How to calculate Gross Potential Rent?

The Gross Potential Rent represents the maximum potential rental income a property could generate if fully leased at market rates is calculated using Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent. To calculate Gross Potential Rent, you need Number of Units Available for Rent (U) & Annualised Market Rent (MR_annualised). With our tool, you need to enter the respective value for Number of Units Available for Rent & Annualised Market Rent and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search