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:

  1. First, determine the monthly land rent ($). In this example, the monthly land rent ($) is given as 3000.
  2. Next, determine the monthly land mortgage payment ($). For this problem, the monthly land mortgage payment ($) is given as 2000.
  3. 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)