Effective Gross Income (EGI)

Effective gross income (EGI) is a property's total income after subtracting vacancy and credit loss from gross potential rent, plus any other income the property generates. It's the figure used to calculate NOI.

Example

$1,800,000 in GPR less $90,000 in vacancy and credit loss (5%) gives an EGI of $1,710,000.

Formula

GPR + Other Income − Vacancy and Credit Loss = EGI

Excel Formula:

• B4 = GPR
• B5 = Vacancy & Credit Loss