FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Effective Gross Income Formula

Fx Copy

LaTeX Copy

Effective Gross Income is the total income generated by a property after deducting vacancy and credit losses, providing a more accurate representation of its revenue. Check FAQs

EGI = GRI + OI - VBD

EGI - Effective Gross Income?GRI - Potential Gross Rental Income?OI - Other Income?VBD - Allowances for Vacancies and Bad Debts?

Effective Gross Income Example

With values

With units

Only example

Here is how the Effective Gross Income equation looks like with Values.

Here is how the Effective Gross Income equation looks like with Units.

Here is how the Effective Gross Income equation looks like.

27730 = 23230 + 6500 - 2000

27730 = 23230 + 6500 - 2000

27730 = 23230 + 6500 - 2000

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Mortgage and Real Estate » fx Effective Gross Income

Effective Gross Income Solution

Follow our step by step solution on how to calculate Effective Gross Income?

FIRST Step Consider the formula

EGI = GRI + OI - VBD

Next Step Substitute values of Variables

∴

EGI = 23230 + 6500 - 2000

Next Step Prepare to Evaluate

∴

EGI = 23230 + 6500 - 2000

LAST Step Evaluate

∴

EGI = 27730

Effective Gross Income Formula Elements

Variables

Effective Gross Income

Effective Gross Income is the total income generated by a property after deducting vacancy and credit losses, providing a more accurate representation of its revenue.

Symbol: EGI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Effective Gross Income

Potential Gross Rental Income

Potential Gross Rental Income refers to the total revenue a property could generate if all units were rented at their maximum achievable rental rates, without factoring in collection losses.

Symbol: GRI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Potential Gross Rental Income

Other Income

Other Income refers to revenue generated by a property from sources other than rent, such as parking fees, laundry services, or late fees.

Symbol: OI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Other Income

Allowances for Vacancies and Bad Debts

Allowances for Vacancies and Bad Debts represent reserves set aside by businesses or property owners to cover potential losses due to unoccupied units or tenants defaulting on payments.

Symbol: VBD

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Allowances for Vacancies and Bad Debts

Other formulas in Mortgage and Real Estate category

Go Cost Approach Appraisal

PV = RC - D + V L

Go Vacancy Rate

VR = \frac{U Vacant \cdot 100}{U Total}

Go Gross Income Multiplier

GIM = \frac{PSP}{EGI}

Go Gross Rental Income

GRI = \frac{PV}{GRM}

How to Evaluate Effective Gross Income?

Effective Gross Income evaluator uses Effective Gross Income = Potential Gross Rental Income+Other Income-Allowances for Vacancies and Bad Debts to evaluate the Effective Gross Income, The Effective Gross Income is the total income generated by a property after subtracting vacancy and credit losses. Effective Gross Income is denoted by EGI symbol.

How to evaluate Effective Gross Income using this online evaluator? To use this online evaluator for Effective Gross Income, enter Potential Gross Rental Income (GRI), Other Income (OI) & Allowances for Vacancies and Bad Debts (VBD) and hit the calculate button.

FAQs on Effective Gross Income

What is the formula to find Effective Gross Income?

The formula of Effective Gross Income is expressed as Effective Gross Income = Potential Gross Rental Income+Other Income-Allowances for Vacancies and Bad Debts. Here is an example- 27500 = 23230+6500-2000.

How to calculate Effective Gross Income?

With Potential Gross Rental Income (GRI), Other Income (OI) & Allowances for Vacancies and Bad Debts (VBD) we can find Effective Gross Income using the formula - Effective Gross Income = Potential Gross Rental Income+Other Income-Allowances for Vacancies and Bad Debts.

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Effective Gross Income Formula

Effective Gross Income Example

Effective Gross Income Solution

Effective Gross Income Formula Elements

Other formulas in Mortgage and Real Estate category

How to Evaluate Effective Gross Income?

FAQs on Effective Gross Income

Variable Name