Enter the monthly rent ($), the monthly operational costs ($), and the monthly mortgage cost ($) into the Return on Rent Calculator. The calculator will evaluate and display the Return on Rent.
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Return on Rent Formula
The following formula is used to calculate the Return on Rent.
ROR = (MR-OC-MC) / (OC+MC) * 100
- Where ROR is the Return on Rent (%)
- MR is the monthly rent ($)
- OC is the monthly operational costs ($)
- MC is the monthly mortgage cost ($)
How to Calculate Return on Rent?
The following example problems outline how to calculate Return on Rent.
Example Problem #1
- First, determine the monthly rent ($).
- The monthly rent ($) is calculated to be : 2000.
- Next, determine the monthly operational costs ($).
- The monthly operational costs ($) is measured to be: 500.
- Next, determine the monthly mortgage cost ($).
- The monthly mortgage cost ($) is found to be: 1000.
- Finally, calculate the Return on Rent using the formula above:
ROR = (MR-OC-MC) / (OC+MC) * 100
The values given above are inserted into the equation below and the solution is calculated:
ROR = (2000-500-1000) / (500+1000) * 100 = 33.33 (%)
Example Problem #2
The variables needed for this problem are provided below:
monthly rent ($) = 600
monthly operational costs ($) = 100
monthly mortgage cost ($) = 300
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
ROR = (MR-OC-MC) / (OC+MC) * 100 = (%)
