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 ($)