Enter the total property cost ($) and the total build cost ($) into the calculator to determine the Estimated Rent of Build-to-Rent.
Estimated Rent of Build-to-Rent Formula
The following formula is used to calculate the Estimated Rent of Build-to-Rent.
R = ( PC + BC) * .01
- Where R is the Estimated Rent of Build-to-Rent ($/month)
- PC is the total property cost ($)
- BC is the total build cost ($)
How to Calculate Estimated Rent of Build-to-Rent?
The following example problems outline how to calculate Estimated Rent of Build-to-Rent.
Example Problem #1:
- First, determine the total property cost ($). In this example, the total property cost ($) is given as 150000.
- Next, determine the total build cost ($). For this problem, the total build cost ($) is given as 200000.
- Finally, calculate the Estimated Rent of Build-to-Rent using the equation above:
R = ( PC + BC) * .10
The values given above are inserted into the equation below:
R = ( 150000 + 200000) * .10 = 3500 ($)
Example Problem #2:
The variables needed for this problem are provided below:
total property cost ($) = 60000
total build cost ($) = 120000
Entering these values and solving gives:
R = ( 60000 + 120000) * .01 = 1800 ($)
