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Base Rent Escalation Calculator
Commercial leases use one of three escalation structures: fixed percent annual bumps, CPI-indexed adjustments with a floor and cap, or stepped schedules with different rates for the early and late years. This calculator builds the complete escalation table, totals contract rent, and reports the final-year run rate so brokers can model NPV and underwriters can size loan proceeds correctly.
Total contract rent
$1,719,582
Average annual rent
$171,958
Final year rent
$195,716
How the math works
Base rent escalation supports three structures: fixed % bumps, CPI-indexed bumps with floor/cap, and stepped (e.g., 3% for years 1-5, then 4% years 6-10). CPI clauses with floor and cap protect both parties from runaway swings.
Most institutional leases prefer fixed escalators because they're predictable for underwriting.
How to Use
- Enter year-1 base rent and the lease term.
- Choose escalator type (fixed, CPI, stepped).
- Enter the relevant escalator parameters.
- Read total contract rent, average annual rent, and final-year rent.
Frequently Asked Questions
Which escalator type benefits landlords most?
In high-inflation environments, uncapped CPI wins. In low-inflation, fixed 3% wins. Stepped is most common for tenant-friendly deals where early years are softer.
What's a typical CPI floor and cap?
Floor 2% and cap 5% is common — protects landlord against deflation while shielding tenant from runaway inflation.
Do escalators apply to opex too?
Opex pass-through reflects actual costs (no escalator needed). Only base rent has a contractual escalator.
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