Cap rate, NOI, DSCR and rental calculators

Triple Net Lease Calculator

Enter the base rent and the NNN charges to get the monthly and annual cost of the lease.

The triple net lease calculator works out what you pay on a triple net (NNN) lease. It adds base rent to property tax, building insurance and common-area maintenance (CAM) charges, then shows the total per month, per year and as an all-in rate per square foot. It runs in your browser, is free, and needs no account or sign-up. Nothing you type is uploaded. The tool does arithmetic only. It shows the sums from the terms you enter, so you can check a landlord’s quote, compare lease options or prepare a client document. It does not advise on whether a lease or deal is suitable.
Triple net lease calculator example

How to use the triple net lease calculator

  1. Set “Lease type” to “Triple net (NNN): taxes, insurance and CAM”. If your lease passes through fewer costs, choose “Double net (NN): taxes and insurance” or “Single net (N): taxes” instead.
  2. Under “How are the charges given?”, choose “Per square foot per year” if the landlord quotes charges that way, or “Building totals (share by area)” if you have the building’s yearly bills.
  3. Enter “Your space (ft²)” as the lease measures it.
  4. Enter “Base rent per square foot per year ($)”.
  5. For per square foot charges, fill in “Property tax per square foot per year ($)”, “Building insurance per square foot per year ($)” and “CAM per square foot per year ($)”. For building totals, fill in “Whole building area (ft²)”, “Building property tax per year ($)”, “Building insurance per year ($)” and “Building CAM expenses per year ($)”.
  6. If your lease adds a fee on CAM, open “More options” and enter “Admin fee on CAM (%)”.
  7. Read “Total rent per month”, “Total rent per year” and “All-in rate per square foot per year”. Check “How it was calculated” for each step.

The three example buttons load sample values. Those values are examples, not market data, so replace every one with your own figures. “Reset” restores the example values. “Copy link” copies a link that reopens the same inputs. “Print / save result” prints a one-page sheet with your inputs, results, calculation steps and the date. To keep a PDF, choose save as PDF in the print dialog.

What is a triple net lease (NNN lease) agreement, a NNN commercial lease or a NNN lease type?

A triple net lease is a commercial lease in which the tenant pays base rent plus three “nets”: property taxes, building insurance and common area maintenance (CAM). The rent quoted in the lease is often not the full monthly cost, because these charges are added on top. A triple net lease agreement therefore has two parts to read: the base rent and the list of pass-through charges.

In the tool’s example, base rent is $20.00 × 2,500 ft² = $50,000.00 a year. Property tax is $3.00 per ft² ($7,500.00), insurance is $1.00 per ft² ($2,500.00) and CAM is $4.00 per ft² ($10,000.00). The charges come to $20,000.00, so the total is $70,000.00 a year, or $5,833.33 a month. The charges are 28.6 % of total rent, and the all-in rate is $28.00 per ft² per year.

What does a triple net (NNN) lease or triple net rent mean, and what is the meaning of NNN lease?

Triple net rent is the base rent plus the pass-through charges. “NNN” is the written short form of triple net and is pronounced “triple net”. Each N stands for one category of cost that passes to the tenant. People also search for what NNN lease means or what the NNN in leasing is, and the answer is the same: the tenant pays these costs in addition to base rent, as the lease sets out.

What does NNN or triple net mean in real estate, what is NNN in commercial real estate, and what does NNN stand for?

In commercial real estate, NNN stands for triple net. It describes a lease in which the tenant pays the building’s property taxes, insurance and common area costs through charges billed on top of base rent. Net lease is the wider family of leases that pass some or all of these costs to the tenant.

What is NNN in a commercial lease, and what is triple net in real estate?

A commercial lease that uses NNN passes taxes, insurance and CAM to the tenant. The rest of the building costs stay with the landlord unless the lease says otherwise. Lenders, appraisers and leases can define these terms differently, so check the wording of your own agreement, including which items are passed through and how the tenant’s share is set.

What is included in a triple net lease, and what are NNN leases, NNN charges, NNN fees and NNN expenses?

A triple net lease usually includes property taxes, building insurance and CAM. Costs the lease does not pass to the tenant stay with the landlord.

NNN charges, fees and expenses all refer to the pass-through costs billed to the tenant on top of base rent: property tax, building insurance and CAM. They are usually billed as monthly estimates and then reconciled to actual costs after the year. For the CAM part, see the CAM charges page. An optional admin fee on CAM can be added in the tool under “More options”.

What is the NNN in leasing, and what is a double net lease?

Single net (N) usually passes through property taxes. Double net (NN) usually passes through taxes and insurance, and triple net (NNN) adds CAM. A net net net lease is another name for a triple net lease, and a net net lease is another name for a double net lease. Exact definitions vary by lease and region, so read your lease to see which items it passes through. In the tool, “Lease type” switches between the three and includes only the charges for that type.

How is the tenant’s share worked out?

For building totals, the tenant’s share is the tenant’s area divided by the building area, and that share is applied to each building cost. For per square foot charges, the tool multiplies each rate by your space. In the example, property tax of $3.00 per ft² on 2,500 ft² gives $7,500.00 a year.

Sources: Wikipedia: Net lease, Wikipedia: NNN lease.

Frequently asked questions

Does the calculator handle double net and single net leases?

Yes. Set “Lease type” to “Double net (NN): taxes and insurance” or “Single net (N): taxes”. The tool then includes only the charges for that lease type.

What does the landlord pay in a triple net lease?

The landlord pays any cost the lease does not pass to the tenant. Under a triple net lease, the tenant pays base rent plus property taxes, building insurance and CAM, so read the lease to confirm which items are passed through.

Are NNN charges fixed each month?

NNN charges are usually billed as monthly estimates and then reconciled to actual costs after the year. The calculator shows the amounts you enter, so it does not predict how actual costs will change. See the CAM charges page for more on this.

How is the admin fee on CAM added?

Enter the percentage in “Admin fee on CAM (%)” under “More options”. It applies only when “Lease type” is “Triple net (NNN): taxes, insurance and CAM”, and some leases do not include it.

No. The tool is arithmetic only. It does not give investment, loan, tax or legal advice, and it does not say whether a deal is good.