Effective Gross Income
Two-Input Ratio Income Metrics Cash Flow

Gross Potential Rent

Total annual rental income assuming full occupancy.

Example Result

Sample Data
$34,200

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Gross Potential Rent Formula

Monthly Rent x 12
$2,850 x 12
$34,200

What This Means

A sample property priced at $385,000 with $2,850/month rent has a gross potential rent of $34,200. GPR tells you the theoretical income ceiling for a property. It helps you gauge the revenue potential before accounting for vacancy, expenses, or financing. Comparing GPR across properties normalizes the income picture.

Where This Value Comes From

Gross Potential Rent is not entered directly — it is calculated from Monthly Rent. See the formula breakdown above and the detailed inputs below.

Calculated From

Gross Potential Rent is calculated using these inputs:

Monthly Rent
The gross monthly rental income collected from tenants.
Found on your lease agreement
$2,850

Used to Calculate

Gross Potential Rent is used as an input for these calculations:

Effective Gross Income
Income Metrics
$32,490
Gross Rent Multiplier
Income Metrics
11.26x
Management Cost Annual
Expense Metrics
$2,736
Maintenance Cost Annual
Expense Metrics
$1,710
Vacancy Loss Annual
Expense Metrics
$1,710
Effective Vacancy Rate
Expense Metrics
5.00%
Breakeven Ratio
Debt Metrics
107.41%
Value Based on GRM
Valuation Metrics
$385,000
Market Value to Rent Ratio
Valuation Metrics
11.26x
Break-Even Occupancy Rate
Cash Flow Projections
107.41%

Platform Distribution

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Why It Matters

GPR tells you the theoretical income ceiling for a property. It helps you gauge the revenue potential before accounting for vacancy, expenses, or financing. Comparing GPR across properties normalizes the income picture.

Detailed Explanation

Gross Potential Rent (GPR) represents the maximum rental income a property could generate if every unit were rented at market rates with zero vacancy. It is the starting point for all income analysis and serves as the baseline against which actual performance is measured.

Example

Sample Result
$34,200

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

Related Calculations

Effective Gross Income

2

Actual expected income after vacancy and other income.

$32,490 Example

Net Operating Income

U

Income remaining after all operating expenses but before debt service.

$20,344 Example

Cash Flow Before Tax

V

Cash remaining after operating expenses and debt service.

-$4,246 Example

Cash Flow After Tax

W

Cash remaining after all expenses, debt service, and estimated taxes.

-$4,246 Example

Revenue Per Unit

2

Effective gross income divided by the number of units.

$32,490 Example

Income Per Square Foot

2

Effective gross income divided by total square footage.

$21.66 Example

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