Finance

[WebBoard]

From: Mike .


Rental Return
From: John P
Date: 8/31/00
Time: 8:16:43 PM

What is the correct way to calculate rental return as a percentage. What is the formula??

Could you please provide an example

Many Thanks - John P

 

[WebBoard]

David

Reply: 1
From: Mike .


Re: Rental Return
From: David
Date: 8/31/00
Time: 9:39:40 PM

John P

Multiply the weekly rent by 52 (weeks in a year) and divide it by the purchase price, then multiply by 100 to get a %.

Example: $220,000 house, rented for $250 / week

Rental return = (250x52/220,000)x 100 = (13,000/220,000)x 100 = 0.590909 x 100 = 5.909 %

Hope this makes sense to you.

David