Enter the rental rate per month ($), the mortgage cost per month ($), and the operation costs per month ($) into the calculator to determine the Rental Profit.
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Rental Profit Formula
The following formula is used to calculate the Rental Profit.
Prental = RR – MR – OC
- Where Prental is the Rental Profit ($)
- RR is the rental rate per month ($)
- MR is the mortgage cost per month ($)
- OC is the operation costs per month ($)
How to Calculate Rental Profit?
The following example problems outline how to calculate Rental Profit.
Example Problem #1
- First, determine the rental rate per month ($). In this example, the rental rate per month ($) is given as 2000 .
- Next, determine the mortgage cost per month ($). For this problem, the mortgage cost per month ($) is given as 1500 .
- Next, determine the operation costs per month ($). In this case, the operation costs per month ($) is found to be 200.
- Finally, calculate the Rental Profit using the formula above:
Prental = RR – MR – OC
Inserting the values from above yields:
Prental = 2000 – 1500 – 200 = 300 ($)
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 ($) = 100
Entering these values and solving gives:
Prental = 3000 – 2500 – 100 = 400 ($)
