About Rent Arrears Calculator (Formula)
The Rent Arrears Calculator is a tool used to determine the amount of money owed in rent arrears based on the total annual rent and the number of days of arrears. Arrears refer to the outstanding or overdue rental payments.
The formula used to calculate the rent arrears is as follows:
Rent Arrears = (Total Annual Rent / 365) * Number of Days of Arrears
To calculate the rent arrears, the total annual rent is divided by 365 to obtain the daily rent amount. This daily rent amount is then multiplied by the number of days of arrears to determine the total amount owed in rent arrears.
For example, let’s say the total annual rent is $12,000 and there are 30 days of arrears. Using the formula, the calculation would be:
Rent Arrears = ($12,000 / 365) * 30 = $986.30
Therefore, in this example, the rent arrears would amount to $986.30.
The Rent Arrears Calculator simplifies this calculation process, allowing landlords, tenants, or property managers to quickly determine the outstanding rent arrears based on the provided information. It can be a useful tool in managing and resolving rental payment issues, providing clarity and transparency in rental transactions.