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Vacancy Loss Calculator

Quantify the gap between gross potential rent and what actually hits the bank. Enter rent, vacancy, and credit loss, we'll show effective gross income and total income loss.

Effective Gross Income

$165,600

→ Standard

Gross potential rental income (annual)
USD / year

100% occupancy, market rent, no concessions.

Vacancy rate
%

Stabilized multifamily averages 5%–8%.

Credit & collections loss
%

Delinquencies, write-offs, concessions.

Vacancy loss
$10,800
Credit loss
$3,600
Total loss %
8.00%
Gross potential
$180,000
How this is calculated

EGI = Gross potential − Vacancy $ − Credit loss $

Splitting vacancy from credit loss is what underwriters do. Lumping them together hides operational issues that hurt your refi or sale.

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We'll compare your loss ratio against comparable assets and flag operations leaks worth fixing first. Free 30-minute consult.

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FAQ

Common questions

What's a normal vacancy rate?

Stabilized U.S. multifamily averages 5%–8% economic vacancy (physical vacancy plus loss-to-lease). Class-A urban can run 3%–5%; older Class-C in soft markets can hit 10%–15%. Always pull submarket-specific data, national averages mislead in tertiary markets.

What's the difference between vacancy and credit loss?

Vacancy is income lost to empty units. Credit loss is income lost to tenants who occupy the unit but don't pay (delinquencies, evictions, write-offs). Underwriting both separately makes you tighter than the lazy 5%-vacancy pro forma everyone ships.

How do I reduce vacancy loss?

Three levers: pre-leasing (start marketing 60 days before turn), turn time (target under 7 days from move-out to rent-ready), and pricing (the unit at 95% of market beats a vacant unit at 100%). Property management is the single biggest variable.

Should I underwrite zero vacancy if my unit is full now?

No. Even fully-leased buildings have turn vacancy when leases roll. Lenders, appraisers, and serious LPs will reject any pro forma with under 5% vacancy unless you've got a long-term corporate lease or master-tenant in place.
Need help interpreting your numbers?

Ready to benchmark vacancy with our operations team?

A 1% vacancy improvement compounds across every cap-rate, DSCR, and valuation downstream. We'll show what's actually achievable in your submarket.