Net Effective Rent Calculator
Net Effective Rent Calculator: Net Effective Rent (NER) is a calculation used in real estate to determine the actual rent a tenant pays after accounting for any discounts, concessions, or rent-free periods. It provides a clearer picture of the financial impact of a lease agreement over its term. NER is particularly useful for landlords and tenants alike, as it helps in comparing different rental offers and understanding the true cost of renting a property.
Net Effective Rent Calculator
Lease Term and Rent
Discounts for Tenants
Additional Landlord Expenses
Results
| Net Effective Rent (Monthly) | Net Effective Rent (Annual) |
|---|---|
| $0.00 | $0.00 |
Solution Method
How to Use the Net Effective Rent Calculator
To use the Net Effective Rent Calculator, enter the lease term, monthly rent, number of rent-free months, tenant cash allowance, and operating costs. Optionally, you can input the operating costs as a percentage of the monthly rent. Click "Calculate" to view the net effective rent both monthly and annually. The results will be displayed in a table and visualized in a pie chart. Use the "Clear" button to reset the fields and start over.
Formula for Net Effective Rent Calculator
The formula for calculating Net Effective Rent (NER) is: NER = 12 × [ BR × ( Term − N ) − TA − OC × Term ] / Term. Where:
BR — Base Rent per month;
Term — Lease term in months;
N — Number of rent-free months;
TA — Tenant cash allowance (total);
OC — Operational costs per month.
The net effective rent (monthly) is calculated by dividing the net effective rent (annual) by 12.
Formula
Net Effective Rent (NER) formula:
NER = 12 × [BR × (Term - N) - TA - (OC × Term)] / Term
Where:
- BR = Base Rent per month
- Term = Lease term in months
- N = Number of rent-free months
- TA = Tenant Cash Allowance (in total)
- OC = Operating Costs per month