Enter the base annual rent ($) and the aggregate purchase price ($) into the Calculator. The calculator will evaluate the Rent Factor. 

Rent Factor Formula

RF = BAR / APP *100

Variables:

  • RF is the Rent Factor (%)
  • BAR is the base annual rent ($)
  • APP is the aggregate purchase price ($)

To calculate Rent Factor, divide the base annual rent by the aggregate purchase price, then multiply by 100.

How to Calculate Rent Factor?

The following steps outline how to calculate the Rent Factor.

  1. First, determine the base annual rent ($). 
  2. Next, determine the aggregate purchase price ($). 
  3. Next, gather the formula from above = RF = BAR / APP *100.
  4. Finally, calculate the Rent Factor.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

base annual rent ($) = 60000

aggregate purchase price ($) = 600000