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 (\$)

## 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)