Enter the number of rentable units and the average rent per unit ($/unit) into the calculator to determine the Potential Rent.
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Potential Rent Formula
The following formula is used to calculate the Potential Rent.
Rp = #U * AR
- Where Rp is the Potential Rent ($)
- #U is the number of rentable units
- AR is the average rent per unit ($/unit)
How to Calculate Potential Rent?
The following example problems outline how to calculate Potential Rent.
Example Problem #1:
- First, determine the number of rentable units. In this example, the number of rentable units is given as 150.
- Next, determine the average rent per unit ($/unit). For this problem, the average rent per unit ($/unit) is given as 1000.
- Finally, calculate the Potential Rent using the equation above:
Rp = #U * AR
The values given above are inserted into the equation below:
Rp =150 *1000 = 150,000 ($)
Example Problem #2:
The variables needed for this problem are provided below:
number of rentable units = 200
average rent per unit ($/unit) = 1500
Entering these values and solving gives:
Rp = 200 * 1500 = 300,000 ($)
