Definition
Gross potential income minus vacancy and credit loss, plus other income, before operating expenses.
Example
$180,000 of gross potential rent less 7% vacancy plus $9,000 of other income gave EGI of $176,400.
Related terms
Frequently asked questions
What does Effective Gross Income mean in real estate?
Gross potential income minus vacancy and credit loss, plus other income, before operating expenses.
How is Effective Gross Income used in practice?
$180,000 of gross potential rent less 7% vacancy plus $9,000 of other income gave EGI of $176,400.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.