Free Effective Gross Income Calculator

Calculate effective gross income by deducting vacancy and credit losses from gross potential income.

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Effective Gross Income

$94,752

Gross Potential Income$100,800
Total Vacancy & Credit Loss$6,048

Effective Gross Income vs Gross Potential Rent

View formula & how it works →

Effective Gross Income

EGI represents the realistic income a property will generate after accounting for vacancy and credit losses.

Formula

EGI = (Gross Potential Rent + Other Income) x (1 - Vacancy%)

Components

  • Gross Potential Rent: total rent if 100% occupied at market rates
  • Other Income: laundry, parking, fees, storage
  • Vacancy & Credit Loss: units unoccupied plus rent from tenants who fail to pay

    • Example Calculation

    A building has $96,000 potential rent, $4,800 other income, and 6% vacancy/credit loss.

    1. 01Gross potential income: $96,000 + $4,800 = $100,800
    2. 02Vacancy loss: $100,800 x 6% = $6,048
    3. 03Effective gross income: $100,800 - $6,048 = $94,752

    Frequently Asked Questions

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