About the Triple Net Lease Calculator
In a triple net (NNN) lease the tenant pays base rent plus its share of the property’s three main operating costs: real estate taxes, building insurance and common area maintenance (CAM). Listings usually quote base rent per square foot per year with an estimate of the “NNN” or “operating expense” charges, so the real monthly bill is much higher than the base rent alone suggests.
Enter the leased area, the base rent and each NNN charge per square foot per year, and any administrative fee the landlord adds to CAM. The calculator shows the total monthly and yearly rent, the all-in rate per square foot, the share of your rent that goes to pass-through charges and the total cost over the lease term, with base rent rising by the escalation in the lease and NNN charges rising at the rate you expect. A year-by-year table and chart show the schedule.
NNN charges are estimates that the landlord reconciles against actual costs each year, so you may receive a bill or credit after year-end. Ask for past reconciliations, check whether the lease caps controllable CAM increases, and confirm which costs (management fees, capital repairs, roof replacement) can be passed through.
With the default inputs, the total monthly rent (year 1) is $6,875.00. Change any value above to recalculate instantly.
How to use the triple net lease calculator
- 1Enter the leased square footage and the base rent per square foot per year.
- 2Enter the landlord’s estimates for taxes, insurance and CAM per square foot.
- 3Add any admin fee charged on CAM.
- 4Set the yearly base rent escalation, expected NNN growth and lease term.
- 5Review the monthly payment, all-in rate and the year-by-year schedule.
Formula and method
Commercial rents in the US are normally quoted per square foot per year. NNN charges per square foot are property taxes plus insurance plus CAM, with any administrative fee applied to CAM only. Adding NNN to base rent gives the all-in rate; multiplying by the leased area gives yearly rent, and dividing by 12 gives the monthly payment.
For the full term, base rent grows by the lease escalation each year and NNN charges grow by the rate you expect; the yearly amounts are summed. Real NNN bills are estimates paid monthly and reconciled against actual costs after each year, so treat the growth rate as an assumption.
- B
- Base rent per sq ft per year
- T, I, CAM
- Taxes, insurance and common area maintenance per sq ft per year
- A
- Leased area in square feet
Worked examples
2,500 sq ft retail space at $24 NNN
Taxes ($4.50), insurance ($1.25) and CAM ($3.25) add $9.00 per sq ft to the $24 base rent, for an all-in $33.00. On 2,500 sq ft that is $82,500 a year or $6,875 a month, of which $1,875 is NNN charges. With 3% base escalations and 2% NNN growth, five years cost about $435,639.
Small office with a 15% CAM admin fee, 10-year lease
The 15% admin fee raises CAM from $5.00 to $5.75, so NNN charges are $13.25 per sq ft and the all-in rate is $43.25. On 1,200 sq ft that is $4,325 a month in year 1, and about $594,975 over ten years with 3% increases on both parts.
10,000 sq ft warehouse, 3-year lease
Industrial NNN charges of $4.20 per sq ft on top of $12 base rent give $16.20 all-in, or $13,500 a month for 10,000 sq ft. Over three years with 2.5% base escalations and 2% NNN growth the lease costs about $497,612.
Frequently asked questions
What is a triple net lease?+
A triple net (NNN) lease is a commercial lease where the tenant pays base rent plus its pro-rata share of the property’s real estate taxes, building insurance and common area maintenance. The landlord’s rent is “net” of those three expenses.
How do you calculate NNN rent?+
Add the NNN charges per square foot (taxes + insurance + CAM) to the base rent per square foot, multiply by your leased square footage to get the yearly rent, and divide by 12 for the monthly payment. For example, ($24 + $9) × 2,500 sq ft ÷ 12 = $6,875 a month.
What are CAM charges?+
Common area maintenance charges cover the cost of running shared parts of the property — parking lot repairs and lighting, landscaping, snow removal, common-area cleaning and utilities, security and often property management. Each tenant pays a share based on its square footage.
What is a CAM reconciliation?+
Tenants usually pay estimated NNN charges monthly. After the year ends, the landlord compares the estimates with actual costs and bills the tenant for any shortfall or credits any overpayment. Ask for prior years’ reconciliations before signing.
What is the difference between NNN, modified gross and full-service leases?+
In an NNN lease the tenant pays taxes, insurance and CAM on top of base rent. In a modified gross lease some of those costs are included in rent. In a full-service (gross) lease the landlord pays operating costs and the rent quoted covers nearly everything.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.