How do you calculate the revenue generation index?

The revenue generation index (RGI) is calculated by dividing a property's actual revenue by its potential revenue, then multiplying the result by 100 to express it as a percentage. The formula is: RGI = (Actual Revenue / Potential Revenue) × 100. This index helps assess how effectively a property is generating income relative to its capacity, allowing for better performance comparison within the market. An RGI above 100 indicates performance above potential, while below 100 suggests underperformance.