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 = (%)