CAM Cap Exposure Calculator

CAM caps shift expense growth to landlord.

CAM growth rate %

Tenant cap %

Current CAM

Years remaining

Cumulative landlord absorption

$525,418

Final year annual absorption

$141,781

Final year capped CAM

$983,899

How the math works

Actual grows at CAM rate. Capped grows at cap rate. Absorption = actual − capped each year. Sum over term.

5% vs 3% × 7 yr: cumulative absorption ~$135k. Final year $33k/yr drag. Caps meaningful in high-growth periods.

How to Use

Enter CAM growth rate %.
Enter tenant cap %.
Enter current CAM.
Enter years remaining.
Read landlord cumulative absorption.

Frequently Asked Questions

CAM caps?

Tenant pays actual CAM up to cap %. Above cap, landlord absorbs. Common caps: 3-5% annual increase (compounding or simple). Protects tenant from runaway expenses; cost to landlord in high-inflation periods.

Compounding vs simple?

Compounding cap: cap applied to prior year's capped amount. Simple cap: cap applied to original base. Compounding is tenant-friendlier over time. Simple slightly landlord-friendlier. Lease language controls — read carefully.

Negotiation?

Caps optional; not in all leases. Tenant leverage to request. 3-year to 5-year reset (cap resets to actual periodically) compromise. Fixed cap $ amount alternative. Landlord push back: cap NOI growth, complicates underwriting.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.