Net effective rent calculator for lease concessions
See what a lease really brings in each month once free months and other move-in concessions are spread across the term.
Net Effective Rent
Updates as you type
the free month, spread across the year
How this is calculated. In plain words.
- 1
Rent over the term is the monthly face rent times the number of months.
- 2
Concessions are the free months times the face rent, plus any other dollar concessions.
- 3
Net effective rent is the rent over the term minus concessions, divided by the number of months.
- 4
The discount compares net effective rent with face rent.
This calculator gives an estimate for planning only. It is not financial, tax or legal advice.
Free templates that go with this: lease renewal letter and residential lease agreement.
What the free month really costs.
What is the difference between face rent and net effective rent?
Face rent is the monthly amount written in the lease. Net effective rent spreads every concession across the term, so it shows the average you really collect. A $2,400 lease with one free month on a 12 month term nets $2,200 a month.
Why give a free month instead of lowering the rent?
A free month keeps the higher face rent on the lease, which sets the starting point for the renewal. A lower rent is simpler for the tenant to understand. This calculator lets you compare both on the same basis.
Should waived fees count as concessions?
Yes, if you would normally charge them. Enter the dollar value of any waived application, amenity or parking fee, and any gift card or moving credit, in the other concessions field.
How do I keep concessions visible in TenantLoop?
Post the free month or discount as its own credit on the tenant ledger instead of lowering the lease rent. The rent roll then keeps the face rent, and the ledger shows what was given away.
Is the result advice?
No. It is an estimate for planning, using only the numbers you type. Nothing is saved or sent anywhere; the calculation runs in your browser.
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