Enter the agreed rent price (\$) and the free market price (\$) into the calculator to determine the Economic Rent.

## Economic Rent Formula

The following formula is used to calculate the Economic Rent.

Re = AP – FMP

• Where Re is the Economic Rent (\$)
• AP is the agreed rent price (\$)
• FMP is the free market price (\$)

## How to Calculate Economic Rent?

The following example problems outline how to calculate Economic Rent.

Example Problem #1:

1. First, determine the agreed rent price (\$). In this example, the agreed rent price (\$) is given as 2500.
2. Next, determine the free market price (\$). For this problem, the free market price (\$) is given as 2000.
3. Finally, calculate the Economic Rent using the equation above:

Re = AP – FMP

The values given above are inserted into the equation below:

Re = 2500 – 2000 = 500 (\$)

Example Problem #2:

The variables needed for this problem are provided below:

agreed rent price (\$) = 2250

free market price (\$) = 2100

Entering these values and solving gives:

Re = 2250 – 2100 = 150 (\$)