What this calculator does
Net effective rent works out the real average rent after free months, allowances and operating costs. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaNER (annualised) = 12 × [Base rent × (Term − Free months) − Allowance − Operating cost × Term] / Term
The inputs explained
| Field | What to enter |
|---|---|
| Base monthly rent ($) | A number, measured in your currency. Starts at 2000. |
| Lease term (months) | A number, measured in months. Starts at 12. |
| Free rent months (months) | A number, measured in months. Starts at 1. |
| Tenant allowance (total) ($) | A number, measured in your currency. Starts at 0. |
| Operating costs per month ($) | A number, measured in your currency. Starts at 0. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with base monthly rent
Every other input is held at the calculator’s starting values while base monthly rent varies. Select any row to load that scenario into the calculator.
How the answer changes with base monthly rent