Deterministic math. No hidden assumptions.
Every figure the calculator returns is derived arithmetically from the terms you enter. No market data, benchmark or estimate is inserted on your behalf.
Base rent and escalations
Base rent is calculated monthly from the starting net rate per square foot on the rentable area. Escalations apply on lease anniversaries and support four bases: fixed percent compounding annually, a fixed dollar step per square foot per year, a step schedule of stated annual rates, and fully custom annual rates. A final partial year is pro-rated by its number of months.
Additional rent and recurring costs
Additional rent (operating costs, realty taxes and similar pass-throughs) is applied as a flat rate per square foot per year as entered; it is not indexed unless you change the entered value. Parking and other recurring costs are applied monthly.
Free rent and incentives
Free rent is applied from rent commencement and can be scoped to base rent only, base plus additional rent, or all recurring costs. Tenant improvement allowance, landlord work value and other incentives are treated as a reduction to economic cost in the period they are entered against, not as a reduction to contract rent.
Effective rent, NPV and economic cost
Total lease obligation is contract rent plus additional rent plus recurring costs, less rent abatement. Economic cost additionally nets incentives and adds tenant capital spend above the allowance. Effective rent divides economic cost by rentable area and lease years. NPV discounts the monthly net occupancy cost at the annual discount rate you enter. Amounts are CAD and exclude GST/HST unless you include them in your inputs.
What the tool does not do
It does not read your lease documents, verify any figure, match a property record, or publish market data. Proposal and PDF extraction is a planned Phase 2 feature and is disabled — no file is uploaded or analyzed in this version. The output is financial modelling only, not legal, tax, accounting, appraisal or brokerage advice.