Effective Gross Income
Actual expected income after vacancy and other income.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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What This Means
A sample property priced at $385,000 with $2,850/month rent has a effective gross income of $32,490 at Purchase (Month 0). EGI is the true top-line revenue number for your property. Using GPR alone overstates income because no property achieves 100% occupancy indefinitely. EGI gives you a realistic foundation for calculating NOI and cash flow.
Where This Value Comes From
Effective Gross Income is not entered directly — it is calculated from Gross Potential Rent, Monthly Rent, Vacancy Loss, Effective Vacancy Rate, and Other Income. See the formula breakdown above and the detailed inputs below.
Inputs That Determine Effective Gross Income
Calculations That Use Effective Gross Income
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
EGI is the true top-line revenue number for your property. Using GPR alone overstates income because no property achieves 100% occupancy indefinitely. EGI gives you a realistic foundation for calculating NOI and cash flow.
Detailed Explanation
Effective Gross Income (EGI) adjusts Gross Potential Rent by subtracting expected vacancy losses and adding other income sources like laundry, parking, or storage fees. It reflects the realistic income you can expect to collect.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Gross Potential Rent
2Total annual rental income assuming full occupancy.
Net Operating Income
UIncome remaining after all operating expenses but before debt service.
Cash Flow Before Tax
VCash remaining after operating expenses and debt service.
Cash Flow After Tax
WCash remaining after all expenses, debt service, and estimated taxes.
Revenue Per Unit
2Effective gross income divided by the number of units.
Income Per Square Foot
2Effective gross income divided by total square footage.
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