Enter the contractual rent ($/month) and the annual income ($) into the Calculator. The calculator will evaluate the Rent Shortfall. 

Rent Shortfall Formula

RS = CR - (AI/12/2.5)


  • RS is the Rent Shortfall ($/month)
  • CR is the contractual rent ($/month)
  • AI is the annual income ($)

To calculate Rent Shortfall, divide the annual income by 12, divide this result by 2.5, then subtract that result from the contractual rent per month.

How to Calculate Rent Shortfall?

The following steps outline how to calculate the Rent Shortfall.

  1. First, determine the contractual rent ($/month). 
  2. Next, determine the annual income ($). 
  3. Next, gather the formula from above = RS = CR – (AI/12/2.5).
  4. Finally, calculate the Rent Shortfall.
  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.

contractual rent ($/month) = 1000

annual income ($) = 25000