Effective Gross Income
Calculator
Results
- Effective gross income
- 576,000
- Economic occupancy (%)
- 96
- Vacancy loss (% of potential rent)
- 7
- Monthly effective income
- 48,000
Property management results
| Effective gross income | 576,000 |
| Economic occupancy (%) | 96 |
| Vacancy loss (% of potential rent) | 7 |
| Monthly effective income | 48,000 |
formula-map diagram
- Effective gross income
- 576,000
- Economic occupancy (%)
- 96
- Vacancy loss (% of potential rent)
- 7
- Monthly effective income
- 48,000
Property management relationship
Formula
EGI = gross potential rent − vacancy and credit loss + other income= 576000
Note
This is a simplified model: it applies the standard property-management definition to the numbers you entered. Rent affordability uses a flat share-of-income rule and ignores credit history, local screening criteria and household size. Proration assumes a plain daily rate; your lease or local law may prescribe a different convention (for example a fixed 30-day month). Security-deposit interest is simple interest at the rate you enter, while many jurisdictions set the rate, the compounding and the payout schedule by statute. Income, expense, reserve and escalation figures are straight-line and assume the amounts you enter hold steady; they ignore taxes, depreciation, financing changes, capital events, inflation and market turnover. Lease buyout compares the contractual penalty with the remaining rent only and is not a reading of your lease. These results are general information, not legal, tax or investment advice: check your lease and local tenancy law and consult a qualified professional before acting.
More in Property management
See all →Frequently asked questions
What is the difference between gross potential income and effective gross income?+
Gross potential income (GPI) is the rent you would collect if every unit were leased at full market rent with zero vacancy or losses. Effective gross income (EGI) starts from GPI and subtracts vacancy and credit losses, then adds other income like parking, laundry, or pet fees, giving a realistic income figure.
What counts as 'other income' in this calculation?+
Other income covers any recurring revenue outside base rent: parking fees, storage rentals, laundry machines, pet rent, application fees, and utility reimbursements are common examples. It should only include income that is reasonably stable and collectible, not one-time or speculative amounts.
Why subtract a vacancy and credit loss allowance instead of using actual vacancy?+
When underwriting a purchase or budgeting forward, actual current vacancy may not represent the year ahead, so appraisers and lenders apply a market-based vacancy and credit loss percentage instead. Using actual trailing vacancy is fine for reporting on a property you already operate, but a normalized allowance is standard for valuation.
How does effective gross income feed into net operating income?+
EGI is the top-line revenue figure that operating expenses are subtracted from to arrive at net operating income (NOI). An error in EGI — overstating other income or understating vacancy loss — flows straight through to an inflated NOI and, ultimately, an inflated property valuation.
Can effective gross income be negative or higher than gross potential income?+
EGI can't realistically exceed GPI plus other income, and it shouldn't be negative for an operating property. If your result looks off, check that vacancy/credit loss is entered as a percentage of GPI rather than a dollar amount, and that other income figures are per the same period as rent.