CAM Audit Savings Probability Calculator

CAM audits usually pay for themselves — probability math says when.

Annual CAM billing

Audit cost

Typical recovery rate %

Success probability %

Years audited

Expected net savings

$13,125

Expected recovery

$28,125

Audit ROI multiple

1.88

How the math works

Gross = CAM × rate × years. Expected = gross × prob. Net = expected − cost.

$250k × 5% × 3 yrs = $37.5k gross × 75% = $28.1k expected − $15k cost = $13.1k net. 1.88× ROI.

How to Use

Enter annual CAM billing.
Enter audit cost.
Enter typical recovery rate %.
Enter success probability %.
Read expected net savings.

Frequently Asked Questions

Typical recoveries?

Professional CAM audits recover 2-8% of total CAM billed on average. Common findings: mis-classified capital items, admin fees on non-controllable categories, stale expense allocations, uncapped controllable overflow, miscalculated pro-rata share. Larger buildings usually yield larger recoveries.

Cost structure?

Flat fee $8k-25k per audit year. Or contingency 25-40% of recovery. Contingency good for uncertain cases. Flat fee good for known large-dollar exposure. Typical 50,000 SF tenant with aggressive landlord: 3-5 years of back CAM review, $15-30k fees, $30-80k recovery.

Audit rights?

Most leases grant 90-day audit window after annual reconciliation. Tenant pays unless recovery exceeds 3-5% (then landlord pays). Keep records. Engage a specialty auditor, not general-purpose CPA. Institutional tenants audit every reconciliation as a matter of course.