Calculate potential gross income for a rental property at full occupancy. Add up all unit rents at market rate to find maximum revenue potential.
Potential Gross Income (PGI), also called Gross Scheduled Income (GSI), represents the maximum possible rental revenue a property can generate if every unit is occupied and every tenant pays the full scheduled rent. PGI is the starting point for all income-based property analysis and valuation.
For a 10-unit apartment building with rents ranging from $1,000 to $1,400/month, PGI is the sum of all units' monthly rents multiplied by 12. This gives you the theoretical ceiling — actual income will be lower once you account for vacancy, credit loss, and concessions.
Knowing your PGI also reveals "loss-to-lease" — the gap between what tenants currently pay and what the units could rent for at market rate. This represents untapped revenue that can be captured through strategic rent increases at renewal.
Homebuyers, investors, and real-estate professionals all benefit from precise potential gross income (pgi) figures when evaluating properties, negotiating deals, or planning long-term investment strategies. Save this calculator and revisit it whenever market conditions or your financial situation changes.
PGI is the foundation of every real estate financial analysis. You can't calculate EGI, NOI, cap rate, or cash-on-cash return without first establishing PGI. This calculator makes it easy to compute PGI for multi-unit properties. Instant recalculation lets you compare scenarios side by side, so every buying, selling, or investment decision is grounded in solid financial analysis.
Monthly PGI = Σ(Unit Count × Monthly Rent) for each unit type Annual PGI = Monthly PGI × 12 Average Rent = Monthly PGI / Total Units
Result: $139,200 annual PGI
Studios: 4 × $1,000 = $4,000. 1BRs: 4 × $1,200 = $4,800. 2BRs: 2 × $1,500 = $3,000. Monthly PGI: $11,600. Annual PGI: $139,200. Average rent per unit: $1,160/month across 10 units.
Every income metric builds on PGI: EGI = PGI − Vacancy − Credit Loss + Other Income. NOI = EGI − Expenses. Cash Flow = NOI − Debt Service. If your PGI calculation is wrong, every downstream number is wrong. Get this right first.
The gap between market PGI and in-place PGI represents your value-add opportunity. If market PGI is $150,000 and in-place PGI is $132,000, that $18,000 gap can be captured over 1–3 years through strategic renewals. This is exactly how value-add investors create equity.
Plot your PGI (both market and in-place) over 3–5 years. Market PGI should grow with the local rental market (3–5%/year). In-place PGI should grow faster if you're actively reducing loss-to-lease. If in-place PGI is flat while the market grows, you're leaving money on the table.
Potential Gross Income (PGI) and Gross Scheduled Income (GSI) are essentially the same: the total rent if all units are occupied at their scheduled or market rate. Some analysts use "PGI" for market rents and "GSI" for in-place rents, but the terms are generally interchangeable.
Use market rents for acquisition analysis and valuation (this shows true potential). Use current in-place rents for operating budgets and cash flow tracking (this reflects current reality). The difference is loss-to-lease.
Loss-to-lease is the difference between market rents and actual in-place rents. If market rent is $1,200 and a tenant pays $1,100, the loss-to-lease is $100/month. Across a portfolio, loss-to-lease can represent significant untapped revenue that's recovered through renewal increases.
There are two conventions. Purists define PGI as rental income only, with parking/storage/laundry classified as "other income" added to EGI. Others include all scheduled revenue in PGI. Both are valid — just be consistent.
Property value = NOI / Cap Rate. Since NOI = EGI − Expenses and EGI derives from PGI, higher PGI flows through to higher value. Increasing PGI by $10,000/year at a 6% cap rate adds ~$167,000 in value.
Recalculate PGI annually using current market rent comps. Also recalculate after renovations that justify higher rents, after significant market shifts, and when preparing for refinancing or sale.