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 ($)