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)

Variables:

- 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.

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