Commercial Lease Calculator — Total Occupancy Cost
Enter monthly base rent, lease term, annual rent escalation, monthly NNN (triple-net) charges, and security deposit to see the total occupancy cost, year-by-year breakdown, and cumulative cost curve over the full lease.
$
months
%
$
months
Total rent + NNN charges + security deposit over the full lease term
$135,272
Total costBase rent
82.3%
NNN charges
13.3%
Security deposit
4.4%
- 1
Security deposit
3,000 × 2 months = 6,000 - 2
Total NNN charges
500 × 36 months = 18,000 - 3
Total base rent (with escalation)
111,272Sum of monthly rents escalating annually — see the cumulative curve above. - 4
Total occupancy cost
111,272 + 18,000 + 6,000 = 135,272
How does this calculator work?
A commercial lease's total cost equals the sum of monthly rents escalating annually at a set rate, plus flat NNN charges, plus a security deposit. Enter rent, term, escalation, NNN, and deposit to see total occupancy cost and how it grows month by month.
Formula
How this is calculated
Commercial leases commonly include annual rent escalation clauses — a fixed percentage by which the base rent steps up at the start of each lease year. This calculator applies the escalation compoundingly: year-1 rent is the base, year-2 rent is base × (1 + esc%), year-3 is base × (1 + esc%)², and so on. The cumulative rent over the term is the sum of all monthly payments.
On top of base rent, triple-net (NNN) leases require tenants to pay a share of property taxes, building insurance, and common-area maintenance. This calculator treats NNN as a flat monthly amount; in practice, NNN charges can also escalate. The security deposit (expressed as months of base rent) is a one-time upfront cash-flow item included in the total occupancy cost.
All figures reflect 2025 US commercial real-estate conventions and are estimates. The actual costs depend on the specific lease type (gross, modified gross, NNN, absolute NNN), local tax rates, landlord operating-cost history, and negotiated terms. Always review the full lease document with a qualified real-estate attorney or broker.
Frequently asked questions
In a triple-net lease the tenant pays base rent plus three operating expense pass-throughs: property taxes, building insurance, and maintenance/common-area costs. NNN charges are above the landlord's base rent and are typically reconciled annually against actual costs, meaning they can fluctuate year to year.
Escalation compounds annually — each year's rent is based on the prior year's rate, not the original base. On a 5-year lease at 3% annual escalation, rent in year 5 is about 13% higher than year 1. This calculator sums every month at its applicable year rate to show the exact total.
Yes — the security deposit is typically 1–3 months of base rent and is due upfront. While it is usually refundable at lease end (if obligations are met), it ties up cash for the entire term. This calculator includes it in the total cost as a cash-flow impact; you can set it to 0 to exclude it.
Also known as
TG we-Calculate Editorial Team. (2026). Commercial Lease Calculator — Total Occupancy Cost [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/commercial-lease-calculator
TG we-Calculate Editorial Team. "Commercial Lease Calculator — Total Occupancy Cost." TG we-Calculate. 2026. https://we-calculate.com/calculator/commercial-lease-calculator.
TG we-Calculate Editorial Team, "Commercial Lease Calculator — Total Occupancy Cost," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/commercial-lease-calculator
@misc{wecalculate_commercial_lease_calculator, title = {Commercial Lease Calculator — Total Occupancy Cost}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/commercial-lease-calculator}}, year = {2026}, note = {TG we-Calculate} }
Did this calculator help you?