Enter the monthly land rent ($) and the monthly land mortgage payment ($) into the calculator to determine the Land Rent Rate of Return.

## Land Rent Rate of Return Formula

The following formula is used to calculate the Land Rent Rate of Return.

LRR = (MLR - MMP) / MLR * 100

- Where LRR is the Land Rent Rate of Return (%/month)
- MLR is the monthly land rent ($)
- MMP is the monthly land mortgage payment ($)

To calculate the land rent rate of return, subtract the monthly land mortgage payment from the monthly rent, divide by the monthly rent, then multiply by 100.

## How to Calculate Land Rent Rate of Return?

The following example problems outline how to calculate Land Rent Rate of Return.

**Example Problem #1:**

- First, determine the monthly land rent ($). In this example, the monthly land rent ($) is given as 3000.
- Next, determine the monthly land mortgage payment ($). For this problem, the monthly land mortgage payment ($) is given as 2000.
- Finally, calculate the Land Rent Rate of Return using the equation above:

LRR = (MLR-MMP) / MLR * 100

The values given above are inserted into the equation below:

LRR = (3000- 2000) / 3000 * 100 = 33.33 (%/month)

**Example Problem #2: **

The variables needed for this problem are provided below:

monthly land rent ($) = 4000

monthly land mortgage payment ($) = 3500

Entering these values and solving gives:

LRR = (4000-3500) / 4000* 100 = 12.5 (%/month)