Commercial leasing
Lease NPV Comparison Calculator
Compare the present value of two lease proposals. Enter your own assumptions and local rates.
Calculate your result
What this calculator estimates
Compare the present value of two lease proposals. It combines the inputs below to produce Lower lease-cost NPV. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.
Worked example
Using the displayed sample assumptions, the calculator produces $578,892. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.
Inputs and assumptions
- Rentable area — sample input: 5000 sq. ft.
- Lease term — sample input: 7 years
- Annual discount rate — sample input: 8 %
- Option A annual rent per area unit — sample input: 28 currency units per sq. ft.
- Option A incentives — sample input: 150000 currency units
- Option B annual rent per area unit — sample input: 25 currency units per sq. ft.
- Option B incentives — sample input: 50000 currency units
How to interpret the result
Compare full lease economics rather than face rent alone. Compare a conservative case with an expected case and keep a record of the assumptions used.
Common mistake to avoid
Do not omit incentives, recoveries, commissions or escalation. Local definitions, taxes, lending practices and measurement requirements can materially change the result.
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Reviewed 2026-09-08.