What Is the Vacancy Rate Calculator?
The vacancy rate measures the share of rentable units in a property or portfolio that are currently empty. It is one of the most important metrics in real estate investing, property management, and hotel or commercial leasing because it directly affects rental income. This calculator turns two simple inputs — the number of vacant units and the total number of units — into a clear vacancy rate, occupancy rate, and occupied unit count.
How to Use It
Enter the number of vacant units (empty and available to rent) and the total units in the building or portfolio. Press calculate to see the vacancy rate as a percentage, plus the complementary occupancy rate and how many units are filled.
The Formula
The vacancy rate is the ratio of empty units to total units, expressed as a percentage:
$$\text{Vacancy Rate} = \frac{\text{Vacant Units}}{\text{Total Units}} \times 100$$The occupancy rate is simply the remainder, where \(\text{Occupancy Rate} = 100 - \text{Vacancy Rate}\).
Worked Example
Suppose a building has \(50\) total units and \(3\) are empty. The vacancy rate is:
$$\frac{3}{50} \times 100 = 6\%$$That means the occupancy rate is \(100 - 6 = 94\%\), with \(47\) units occupied.
FAQ
What is a good vacancy rate? For residential rentals, a healthy market often runs between 2% and 8%. Higher rates may signal pricing or location issues.
Can I use this for square footage? Yes. Replace unit counts with vacant and total square footage to compute a physical vacancy rate.
Does it include economic vacancy? No. This computes physical vacancy. Economic vacancy also factors in lost rent from concessions and non-paying tenants.
