Triple Net (NNN) Lease Calculator
Calculate your true all-in monthly commercial rent by factoring base rent alongside property taxes, building insurance, and common area maintenance (CAM).
| Expense Component | Rate ($/SF/Yr) | Monthly Amount | Annual Total | Share (%) |
|---|---|---|---|---|
| Base Rent | $0.00 | $0.00 | $0.00 | 0.0% |
| Real Estate Taxes (Net 1) | $0.00 | $0.00 | $0.00 | 0.0% |
| Building Insurance (Net 2) | $0.00 | $0.00 | $0.00 | 0.0% |
| Common Area Maintenance / CAM (Net 3) | $0.00 | $0.00 | $0.00 | 0.0% |
| Total Operating Pass-Throughs (3 Nets) | $0.00 | $0.00 | $0.00 | 0.0% |
| Total Monthly All-In NNN Payment | $0.00 | $0.00 | $0.00 | 100.0% |
| Year | Monthly Base | Monthly Nets | Total Monthly Rent | Annual Commitment | Running Total |
|---|
How to Use This Calculator
Determine your exact all-in commercial leasing costs and evaluate contract proposals in four straightforward steps:
- Enter Rentable Area & Tenancy Type: Input your leased square footage (RSF). If leasing an entire standalone building, select Single Tenant (100% building share). For a shopping plaza or multi-story office, select Multi-Tenant and input your pro-rata percentage.
- Input Base Rent: Enter the contract base rent. You can enter it in the standard annual rate ($/SF/year), monthly rate ($/SF/month), or total monthly base dollars using the mode switcher.
- Add the Three Operating Nets: Input estimated property taxes, building property insurance, and common area maintenance (CAM). If the landlord charges an administrative management surcharge on CAM, enter the percentage fee.
- Review All-In Monthly Cash Flow: Review your true monthly check amount, total annual commitment, expense pass-through ratio, and multi-year contractual rent escalation schedule.
The Formula & Commercial NNN Mechanics
A commercial triple net lease splits tenant obligations into two distinct financial categories: guaranteed base rent and pass-through operating expenses (the three nets):
Worked Commercial Lease Example
A small business signs a commercial lease for a 2,500 square foot suburban retail medical suite quoted at $30.00 / SF / year base rent, with estimated property taxes of $4.50 / SF / yr, insurance of $1.50 / SF / yr, and CAM expenses of $4.00 / SF / yr (single tenant, 100% share, 0% admin fee):
| Leased Area | 2,500 RSF |
| Annual Base Rent (2,500 SF × $30.00/SF) | $75,000.00 / year ($6,250.00 / mo) |
| Property Taxes (2,500 SF × $4.50/SF) | $11,250.00 / year ($937.50 / mo) |
| Building Insurance (2,500 SF × $1.50/SF) | $3,750.00 / year ($312.50 / mo) |
| CAM Maintenance (2,500 SF × $4.00/SF) | $10,000.00 / year ($833.33 / mo) |
| Total Pass-Through Operating Nets | $25,000.00 / year ($2,083.33 / mo) |
| Total Annual All-In Cost | $100,000.00 / year |
| Total Monthly Out-of-Pocket Payment | $8,333.33 / month |
| All-In Effective Rate per Square Foot | $40.00 / SF / year ($3.33 / SF / mo) |
| Pass-Through Expense Ratio | 25.0% of total payment |
While the headline base rent was $6,250.00 per month, the business must budget an extra $2,083.33 each month for pass-through nets, bringing their true operating cash outflow to $8,333.33 per month.
Frequently Asked Questions
What is included in a triple net (NNN) commercial lease?
In a triple net (NNN) lease, the tenant pays the agreed base rent plus three separate operational pass-through expenses: real estate property taxes, building property and casualty insurance, and common area maintenance (CAM) including parking lot upkeep, landscaping, exterior lighting, security, and administrative management fees.
Why are triple net base rents quoted lower than gross leases?
Triple net base rents appear significantly lower because the tenant directly absorbs the risk of municipal tax increases, insurance premium hikes, and rising building maintenance costs. In a full-service gross lease, the landlord builds a substantial risk cushion into a higher single flat rental rate to cover unexpected expense spikes.
Can my NNN monthly payments increase during the lease term?
Yes. Even if your base rent is locked, operating pass-throughs fluctuate annually based on actual municipal property tax reassessments, insurance market rate shifts, and variable maintenance costs. Landlords bill estimated monthly amounts and perform an annual reconciliation at year-end, which may result in a credit or an additional invoice.
How does pro rata share work in a multi-tenant commercial property?
Your pro rata share is calculated by dividing your leasable square footage by the total gross leasable area of the entire building or shopping center. For example, a 2,000 square foot tenant in a 10,000 square foot retail center pays exactly 20% of the property's total annual taxes, building insurance, and shared CAM costs.
What is the difference between single, double, and triple net leases?
In a single net (N) lease, the tenant pays base rent plus property taxes. In a double net (NN) lease, the tenant pays base rent plus property taxes and building insurance. In a triple net (NNN) lease, the tenant covers base rent plus all three categories: taxes, insurance, and common area maintenance.