Enter the rental rate per month ($), the mortgage cost per month ($), and the operation costs per month ($) into the calculator to determine the Rental Profit. ## Rental Profit Formula The following formula is used to calculate the Rental Profit. Prental = RR – MR – OC • Where Prental is the Rental Profit ($)
• RR is the rental rate per month ($) • MR is the mortgage cost per month ($)
• OC is the operation costs per month ($) ## How to Calculate Rental Profit? The following example problems outline how to calculate Rental Profit. Example Problem #1 1. First, determine the rental rate per month ($). In this example, the rental rate per month ($) is given as 2000 . 2. Next, determine the mortgage cost per month ($). For this problem, the mortgage cost per month ($) is given as 1500 . 3. Next, determine the operation costs per month ($). In this case, the operation costs per month ($) is found to be 200. 4. Finally, calculate the Rental Profit using the formula above: Prental = RR – MR – OC Inserting the values from above yields: Prental = 2000 – 1500 – 200 = 300 ($)

Example Problem #2

The variables needed for this problem are provided below:

rental rate per month ($) = 3000 mortgage cost per month ($) = 2500

operation costs per month ($) = 100 Entering these values and solving gives: Prental = 3000 – 2500 – 100 = 400 ($)