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Blend And Extend NPV Calculator

NPV drives blend-and-extend decisions. This calculator compares scenarios.

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$
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Landlord NPV

$2,661,988

Tenant NPV

-$3,016,637

Combined value created

-$354,649

How the math works

Compute PV of each stream at each party's discount rate; difference is that party's NPV of the restructure.

The deal becomes obvious when both NPVs are positive and combined value exceeds ~5-10% of total contract rent dollars. Below that, the friction of restructuring (legal, internal approvals, board) often eats the benefit on both sides.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Blend And Extend NPV Calculator is built to give a quick, browser-based estimate for blend and extend npv. NPV drives blend-and-extend decisions. This calculator compares scenarios. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

  • Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
  • Run a low, base, and high case when the inputs are estimates.
  • Check the related calculators below when the next decision depends on a different assumption.

How to interpret the blend and extend npv result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this blend and extend npv estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

  1. Enter contract rent monthly.
  2. Enter blended rent monthly.
  3. Enter remaining months.
  4. Enter extension months.
  5. Enter landlord discount %.
  6. Enter tenant discount %.
  7. Read NPV for both sides.

Frequently Asked Questions

Why NPV not straight dollars?

Different parties value cash flow differently. Landlord discount rate often 7-9% (required return on leased asset). Tenant often 5-8% (WACC). Same dollars carry different NPV weight, which is why deals that look symmetric in dollars pencil for both parties in NPV.

Key driver?

Time value of near-term rent relief vs extended-term commitment. Tenant gains from near-term dollars; landlord gains from term certainty. When both NPVs turn positive, deal executes.

When it fails?

Discount rates too similar (no NPV asymmetry to exploit). Market not stressed enough. Landlord already has strong demand for space. Tenant has no near-term cash pressure. Each removes motivation for restructure.

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