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. 

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

  1. First, determine the monthly rent ($).
    • The monthly rent ($) is calculated to be : 2000.
  2. Next, determine the monthly operational costs ($). 
    • The monthly operational costs ($) is measured to be: 500.
  3. Next, determine the monthly mortgage cost ($). 
    • The monthly mortgage cost ($) is found to be: 1000.
  4. 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 = (%)