Net Effective Rent Calculator

Your details

Standard mode finds NER from your gross rent. Reverse mode tells you what gross rent you need to hit a target NER.
Total duration of the lease in months (e.g. 12, 24, 36).
months
The full face rent stated in the lease before any concessions or deductions.
Number of months the tenant pays no rent (e.g. first month free). Fractional values are allowed.
months
One-time cash allowance paid by the landlord for build-out, fit-out, or moving costs (total amount, not monthly).
Monthly landlord expenses such as maintenance, security, cleaning, and repairs that reduce net income.
Broker commission expressed as a number of months of gross rent (common in NYC and other markets). Enter 0 to ignore.
months
For portfolio analysis, enter the number of occupied units sharing the same lease terms.
Currency
Net effective rent (monthly)Moderate concessions
$2,750.00

True average monthly cost of the lease after all concessions

Net effective rent (annual)$33,000.00
Total concessions$3,000.00
Total operating costs (lease)$0.00
Broker fee$0.00
Portfolio NER (annual)$33,000
Effective discount8.3%
Gross rent$2,750.00
Net effective rent$2,750.00

Total concessions: $3,000.00

NER (monthly)$2,750.00
Concessions (total)$3,000.00
Operating costs (total)$0.00

Net effective rent is $2,750.00/month.

  • Your net effective rent is 8.3% below the gross rent of $3,000/month.
  • Total concessions (free months + allowance) are worth $3,000 over the lease.
  • NER spreads concessions evenly across the 12-month term so you can compare leases with different structures on a level footing.

Next stepUse NER to compare competing lease offers side-by-side: a lower NER always wins regardless of how the concessions are structured.

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