Effective Gross Income (EGI) (EGI)
Direct definition
A rental property's potential rental income minus vacancy and collection losses.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
EGI is the top-line revenue an investor can reasonably expect to collect, before operating expenses.
Why it matters
It's the starting point for calculating NOI and other investment metrics.
Where you may see it
- Property income statement
- Rent roll
A real-world example
A property with $60,000 in potential gross rent and a 5% vacancy factor has an EGI of $57,000.
Educational and illustrative only
A common misunderstanding
EGI is not the same as net income — it's calculated before operating expenses are subtracted.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026