How To Calculate Gross Potential Income (GPI)

If you want to know how much your income from property, then you need to take these simple steps to determine your GPI (Gross Potential Income).

As an example let assume you have 4 properties you rent out.

2 x Property #1= $ 500 per month

Property #2= $600 per month

Property #3=$700 per month

1. Calculating how much you will earn for each property per month.

2 units * $500/month = $1,000

1 unit * $600/month = $600

1 unit * $700/month = $700

2. Calculating the total income per month

$1,000 + $600 + $700 = $2,300

3. Calculating the GPI /your annual income/

$2,300 /total month income/ x 12 /months/ = $27,600 /Annual income/

*Remember that we are assuming full occupancy and all payments made.

If you don’t have full occupancy then you should take step 4.

4. Let’s assume you will have 70% occupancy

$27,600 /Annual income 100% occupancy/ * 0.7 /70% occupancy/ = $19,320 /GPI/

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