Rent Shortfall Calculator calculator can be used to determine the financial gap between expected and actual rent payments, helping landlords and tenants understand financial obligations and potential losses.
Learn how to use the Rent Shortfall Calculator calculator and its working principles
The calculator uses the following formula to determine rent shortfall:
Rent Shortfall = (Expected Monthly Rent - Actual Monthly Rent) × Lease Term
This calculation helps you understand the total financial impact of receiving less rent than expected over the duration of the lease.
Suppose you have a tenant who should be paying $1,200/month, but is only paying $1,000/month. If the lease term is 12 months:
Rent Shortfall = ($1,200 - $1,000) × 12 = $240 × 12 = $2,880
In this case, you would be $2,880 short of expected rent over the year.