Skip to content
2xKit

Vacancy Loss Calculator

Estimate rental income lost to vacancy and effective gross income.

Formula v1.0.0GlobalMethodologyReport an issuevacancy-loss-v1
How this is calculated
Gross potential rent = Monthly rent × Units × 12; Vacancy loss = Gross potential rent × Vacancy %; Effective gross income = Gross potential rent − Vacancy loss

Assumptions used in this calculation

  • Uniform vacancy rate: Applies a single vacancy percentage evenly across all units and months, it doesn't model seasonal vacancy patterns or unit-by-unit differences.
  • Flat rent: Assumes rent per unit stays constant across the year, no rent escalation modelled.

About this calculator

Rental income projections built on 100% occupancy are fiction, every rental property sits empty between tenants at least occasionally, and budgeting as if it won't leaves landlords short when it inevitably does. This calculator starts from gross potential rent, monthly rent per unit multiplied by the number of units and by 12 months, then applies an expected vacancy rate to find the rand or rupee amount of income lost to vacancy across the year, and subtracts that loss to arrive at effective gross income, the realistic figure landlords should actually budget and underwrite against. Rather than mentally discounting a rent roll by a rough guess, this gives a precise vacancy-adjusted number in seconds, which matters when that figure feeds into further calculations like net operating income or loan qualification. Because it applies one flat vacancy rate uniformly, adjust the rate up for markets or unit types you know run less stable than average.

Worked example

₹25,000/month rent, 1 unit, 8% vacancy rate

Result: Effective gross income ≈ ₹2,76,000

Was this helpful?

Frequently asked questions