Land Rent Rate of Return Calculator

Formula

The formula to calculate the land rent rate of return (LRR) is:

\[ LRR = \frac{MLR - MMP}{MLR} \times 100 \]

Where:

Land Rent Rate of Return: The percentage return on investment from renting out land, calculated on a monthly basis.

Let's say the monthly land rent (MLR) is $2000, and the monthly land mortgage payment (MMP) is $1500. Using the formula:

\[ LRR = \frac{2000 - 1500}{2000} \times 100 \]

We get:

\[ LRR = 25\%/month \]

So, the land rent rate of return is 25% per month.