Commercial lease worksheet
Triple Net Lease Calculator
Calculate the true monthly cost of a NNN lease by adding base rent, property taxes, insurance, CAM, and other pass-through charges. Use the gross lease comparison to see whether the quoted base rent is actually cheaper.
Enter lease terms
Cost breakdown
Escalation table
| Year | Base rent | NNN charges | Monthly total |
|---|---|---|---|
| 1 | $55,000 | $30,000 | $7,083 |
| 2 | $56,650 | $30,900 | $7,296 |
| 3 | $58,350 | $31,827 | $7,515 |
| 4 | $60,100 | $32,782 | $7,740 |
| 5 | $61,903 | $33,765 | $7,972 |
What Is a Triple Net Lease Calculator?
A triple net lease calculator estimates the tenant's all-in commercial occupancy cost. A NNN quote can look inexpensive because the base rent excludes the three nets: property taxes, building insurance, and common area maintenance. The calculator forces those costs into one effective rate so a tenant can compare a NNN lease against a gross or modified gross lease. This is useful for retail, warehouse, industrial, medical office, and single-tenant properties where pass-through charges can move materially over the lease term.
How to Calculate Triple Net Lease Cost
Add the annual base rent per square foot to property taxes, insurance, CAM, and any other NNN charge. Multiply the total rate by leased square feet to get the annual occupancy cost. Divide that number by 12 to get monthly rent. If the lease has annual escalation, multiply each year's base and NNN charges by the escalation factor so you can see the real lease-term total instead of only the first payment.
Worked Examples
2,500 SF retail lease
A 2,500 SF retail lease at $22/SF base rent, $4.50/SF taxes, $1.25/SF insurance, $5.75/SF CAM, and $0.50/SF other charges has an effective rate of $34/SF. The monthly occupancy cost is about $7,083 before utilities, tenant improvements, and percentage rent.
8,000 SF industrial lease
An 8,000 SF industrial lease at $11/SF base rent plus $5.50/SF in NNN charges has an effective rate of $16.50/SF. That is $132,000 per year, or $11,000 per month. If the lease escalates 3% per year, the five-year total rises above the year-one cost multiplied by five.
Frequently Asked Questions
What is included in a triple net lease?
A triple net lease usually adds property taxes, building insurance, and common area maintenance to the base rent. The tenant pays those pass-through expenses in addition to the quoted rent.
How do I calculate NNN rent per month?
Add base rent, property tax, insurance, CAM, and other NNN charges per square foot per year. Multiply by leased square feet, then divide by 12 for monthly rent.
Why is NNN rent lower than gross rent?
NNN base rent is often lower because the landlord passes operating expenses to the tenant separately. The all-in cost can be higher than a gross lease once CAM, taxes, and insurance are included.
Should I compare NNN rent to a gross lease quote?
Yes. Compare the all-in NNN effective rate to a gross lease rate. A $20/SF NNN lease with $9/SF in pass-through charges is really a $29/SF occupancy cost.
What is a CAM cap?
A CAM cap limits how much common area maintenance charges can increase each year. Tenants often negotiate caps, audit rights, and exclusions for capital expenses.
Is this calculator legal advice?
No. This calculator estimates commercial lease economics. Always read the lease, request recent operating expense statements, and ask a qualified commercial real estate attorney or broker before signing.
About This Calculator
Triple net lease calculator for NNN rent, CAM, taxes, insurance, monthly cost, annual escalation, and gross lease comparison.
Frequently Asked Questions
What is included in a triple net lease?
A triple net lease usually adds property taxes, building insurance, and common area maintenance to the base rent. Tenants may also pay utilities, repairs, management fees, or other pass-through charges depending on the lease.
How do I calculate NNN rent per month?
Add base rent, property tax, insurance, CAM, and other NNN charges per square foot per year. Multiply the total by leased square feet, then divide by 12 to estimate monthly rent.
Why can a NNN lease cost more than the quoted base rent suggests?
The base rent excludes operating expenses. A lease quoted at $20 per square foot with $9 per square foot of NNN charges has a true occupancy cost of $29 per square foot before utilities and build-out costs.
Should I compare a NNN lease to a gross lease?
Yes. Compare the all-in NNN effective rate against a gross lease quote because gross rent usually includes many operating expenses that are separate in a NNN lease.
What CAM protections should tenants ask about?
Ask about CAM caps, audit rights, capital expense exclusions, management fees, gross-up provisions, and annual reconciliation statements before signing a commercial lease.
Is this triple net lease calculator legal advice?
No. This calculator estimates lease economics only. Commercial leases can contain complex legal and accounting terms, so review the actual lease with a qualified broker or attorney.
Alex specializes in personal finance modeling with experience in investment analysis and tax optimization. He ensures every financial calculator follows current IRS guidelines and industry-standard formulas.
- CFA Level II Candidate
- B.S. in Finance, University of Michigan
- 8 years in financial planning tools