Rent is advertised and agreed as a dollar per week amount. But then rent is actually paid each month. This can cause a lot of confusion about how much rent is actually paid each month when it is different to the agreed weekly rent.
This video explains how its done or read on…
What are the correct and incorrect ways to convert rent per week to rent per month? If maths is not your thing, don’t stress, we will keep it simple.
Firstly, some fun facts…
There are 7 days in a week, 12 months and 365 days in a year. There are NOT 4 weeks in a month. Nor are there exactly 52 weeks in a year.
The incorrect way to convert rent per week to rent per month.
- There are slightly more than 4 weeks in a month so … rent per week x 4 does NOT equal rent per month.
- There are slightly more than 52 weeks in a year so … rent per week x 52 and then divided by 12 months, does NOT equal rent per month either.
The correct way to convert rent per week to rent per month.
- Divide the weekly rent by 7 days to calculate the rent per day.
- Multiply the rent per day by 365 days in the year to calculate the rent per year.
- Divide the rent per year by 12 months to calculate the rent per month.
And that is it.
You have now converted rent per week into rent per year.
Let’s use an example to help demonstrate.
Here is an example of how to calculate rent per month.
Let’s say the agreed weekly rent is $420 per week.
Using the above formula let’s do the example.
- $420 per week ÷7 days = $60 per day (rent per day)
- $60 per day x 365 days per year = $21,900 per year (rent per year)
- $21,900 per year ÷12 months = $1,825 per month.
So if the agreed rent is $420 per week, that is equal to $1,825 per month
You can use any amount of rent per week and follow the same formula to calculate rent per month.