Net Effective Rent Calculator
FinanceCalculate the true net effective rent on a lease after accounting for free-rent concessions and operating costs.
Net Effective Rent (Monthly)
Your true average monthly rent, after spreading free-rent months and the tenant allowance across the full lease term and subtracting operating costs.
Net Effective Rent (Annual)
$31,728.00
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Odeh Ahwal0people find this calculator helpful
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Creators
Odeh Ahwal0people find this calculator helpful
Views
Helpful
Saved
Embeds
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Frequently Asked Questions
How is net effective rent calculated?
NER (monthly) = [Base Rent x (Term - Free Months) - Tenant Allowance - Operating Costs x Term] / Term. This spreads any free-rent concession and cash allowance evenly across the whole lease, giving a truer average monthly cost than the sticker rent alone.
Why is net effective rent lower than the stated rent?
Landlords often offer concessions (free months, a cash allowance for build-out) to win a tenant while keeping the "headline" rent high for comparables. Net effective rent reveals the real average cost after those concessions are factored in.
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