Calculators
Vacancy Rate Calculator
Calculate physical vacancy, economic vacancy and the annual rent lost for a rental property or portfolio.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Monthly portfolio reporting
- Underwriting an acquisition
- Setting rent and concession strategy
- Measuring a manager's performance
About this tool
What the Vacancy Rate Calculator does
Physical vacancy counts empty units; economic vacancy measures rent you could have collected but did not, including concessions, bad debt and below-market leases. Economic vacancy is usually higher and tells you more about income lost.
Formula
- Physical vacancy = vacant units ÷ total units
- Economic vacancy = (potential rent − collected rent) ÷ potential rent
- Annual loss = monthly shortfall × 12
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Total units | 40 |
| Vacant units | 3 |
| Potential monthly rent (all units at market) | $60,000 |
| Rent actually collected this month | $54,000 |
| Result | Value |
|---|---|
| Physical vacancy | 7.5% |
| Economic vacancy | 10.0% |
| Occupancy | 92.5% |
| Rent lost per year at this rate | $72,000 |
How to read the result
If economic vacancy is far above physical vacancy, look at arrears, concessions and leases below market rather than empty units.
A long-run vacancy allowance of 5% to 10% is common in underwriting, depending on the market.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Lower is better; many stable residential markets run around 5%.
Income lost from empty units, concessions, non-payment and below-market rents, as a share of potential rent.
Price to the market, turn units quickly, market early and focus on tenant retention.
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