Enter the number of rentable units and the average rent per unit ($/unit) into the calculator to determine the Potential Rent. 

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:

  1. First, determine the number of rentable units. In this example, the number of rentable units is given as 150.
  2. Next, determine the average rent per unit ($/unit). For this problem, the average rent per unit ($/unit) is given as 1000.
  3. 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 ($)