NNN Lease Effective Rent Calculator
A “$3,500 rent” is rarely the real cost. Add CAM, insurance, and property tax to get your true effective rent, see rent per square foot, and find the sales per square foot you need to keep occupancy under a healthy share of revenue.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Step 1 — The Lease
Step 2 — The Space & Target
Effective Rent
Sales Needed to Stay Healthy
Compare the sales/sq ft needed to the industry benchmark ranges — if it sits far above your segment’s norm, the rent is likely too high for the space.
Your Forecast vs Rent
Occupancy below ~10% of revenue is a healthy retail benchmark.
* Pure arithmetic from your inputs — no tax rates or time-sensitive figures are hard-coded. Educational information, not financial or legal advice. Have a broker or attorney review the actual lease.
The Three Nets You Pay On Top
CAM — Common Area Maintenance
Parking, landscaping, hallways, snow removal. Often the largest NNN component.
Insurance
Building insurance the landlord passes through to the tenant.
Property tax
The landlord’s real-estate tax, allocated to your space.
Effective rent
Base + the three nets = the number your break-even and lenders actually use.
Price the Real Lease
- Enter base rent. The headline NNN base, before the three nets.
- Add CAM, insurance, property tax. From the lease estimate or landlord.
- Enter square footage. Your selling + storage area.
- Set your rent target %. 10% is a common healthy ceiling.
- Read effective rent & rent/sqft. The true occupancy cost.
- See sales/sqft needed. The productivity the space must deliver.
Price the Lease, Then Test Feasibility
Full feasibility → use the Viability tool
Fold effective rent into monthly fixed cost and break-even.
Open Startup ViabilityNNN Lease FAQs
Triple-net (NNN) means the tenant pays base rent PLUS three "nets": Common Area Maintenance (CAM), building insurance, and property tax. A "$3,500 rent" is rarely the full cost — the NNN load sits on top and is often 20–40% of the base.
Base rent understates your true occupancy cost. Lenders, buyers, and your own break-even math need the all-in effective rent. Budgeting only the base is one of the most common lease mistakes.
Most healthy retailers run occupancy below ~10% of revenue; above ~10–12% is a red line that compresses every other line. Use the sales-per-square-foot target this tool computes to test your deal.
Forecast annual sales (our Sales Forecast tool) divided by your selling square footage. Compare to the industry benchmark tables to see if the space is productive enough to cover the rent.
Some leases add percentage rent above a sales breakpoint. This tool models the fixed NNN load; add any percentage rent as a variable cost on top when you model the full P&L.
Authoritative References
- U.S. Small Business Administration — Choose the Right Location — lease and location cost considerations.
- IRS — deductibility of rent and the distinction between lease structure and tax.
Estimates only. All figures come from your inputs; no tax rates or time-sensitive constants are hard-coded. Industry rent-ratio benchmarks are educational ranges retrieved 2026-08-13; verify for your market. Educational information, not financial or legal advice. Have a broker or attorney review the actual lease.