This tool calculates your net effective rent by factoring in any concessions or rent-free periods you receive over the lease term.
How to Use the Net Effective Rent Calculator
This calculator will help you determine the net effective rent based on your lease terms, including any free months and additional costs such as a broker fee. To use the calculator, please follow these steps:
- Enter your monthly rent in the “Monthly Rent ($)” field.
- Enter the total number of months in your lease in the “Lease Term (months)” field.
- Enter the number of free months you received in the “Free Months” field.
- Enter any broker fee in the “Broker Fee ($)” field, if applicable.
- Click the “Calculate” button to get the net effective rent.
How the Result is Calculated
The Net Effective Rent is calculated as follows:
(Net Effective Rent) = (Total Rent - Free Rent - Broker Fee) / Lease Term.
Where:
Total Rent = Monthly Rent x Lease Term,
Free Rent = Monthly Rent x Free Months,
Broker Fee is directly subtracted if provided.
Calculator Limitations
This calculator assumes that free months are distributed evenly across the lease term or applied in a manner that averages out to reduce the overall monthly rent. It does not account for varying rent amounts over the lease term or any other one-time fees or discounts not specified.