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How To Calculate Gross Operating Income (G0I)

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Once we know the Gross Potential Income of a real estate investment property,we arrive at the Gross Operating Income by subtracting out the estimated annual losses due to non-payment or vacancies.
Difficulty: Easy
Time Required: 5 minutes

Here's How:

  1. Let's use our already calculated Gross Potential Income result of $54,000. This is if all units are full and all rents paid.

  2. Based on experience, the current market and rental occupancies, we estimate that our losses due to vacancies and non-payment will be 5%.

  3. $54,000 *.05 = $2700

  4. $54,000 - $2700= $51,300 for our Gross Operating Income

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