Net effective rent calculator
Calculate undiscounted landlord net rent over the full lease; use one currency.
Formula
Term=paid+free months; total=rent×paid−allowance−cost×term; monthly=total/term; annual=monthly×12.
Net rent over lease ≈ (2,000)×(11)-(0)-(100)×((11)+(1)) · Average net rent/month ≈ (20,800)÷((11)+(1)) · Annualized net rent ≈ (1,733.333333)×12
How to use
- Enter monthly rent and paid/free months; total term must exceed zero.
- Enter the one-time tenant allowance and monthly operating costs.
- Read average monthly net rent, annualized net rent and lease total.
Examples
- 2,700 × 11 paid months / 12 total months = 2,475, before operating costs.
Frequently asked questions
Is this the tenant’s monthly bill?
No. Set operating costs to zero for rent after concessions; actual payment dates follow the lease.
When do costs apply?
Every month, including free months. The cash allowance is deducted once.
Is present value included?
No discounting, rent escalation, financing or income tax. Negative results mean costs exceed receipts.
Sources
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