Vacancy loss: Putting a Cash Amount on Vacancy
Vacancy loss converts a potential-rent assumption and vacancy percentage into an income reduction. Testing a higher rate shows how exposed the plan is to empty periods.
Use the Vacancy loss Calculator to enter your own figures and compare the result with the worked example below.
Vacancy loss formula
Vacancy loss = Potential rent × Vacancy rate
Worked example
| Item | Example value |
|---|---|
| Potential rent | 24000 USD |
| Vacancy rate | 10 % |
| Vacancy loss | 2,400 USD |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
A percentage average does not show when vacancies occur. Turnover costs and unpaid rent may need separate allowances.
Related calculations
Method and further reading
The example follows the FinMathly calculator method. For broader background, see CFPB: Building a budget. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
Featured photograph: Pexels.