Expense Leakage Calculator

Expenses leak from uncaptured recoveries and overspend. This calculator sizes both.

Budget expenses

Actual expenses

Recoverable expenses

Recoveries collected

Total leakage

$140,000

Overspend

$70,000

Uncaptured recoveries

$70,000

How the math works

Leakage = overspend + uncaptured recoveries.

Quarterly leakage review pays for itself at first reconciliation. On a $5M expense base, 2% leakage = $100k recovery — enough to fund a full-time PM overlay for the year.

How to Use

Enter budget expenses.
Enter actual expenses.
Enter recoverable expenses.
Enter recoveries collected.
Read total leakage.

Frequently Asked Questions

Common leakages?

Missed CAM billings, stale base-year adjustments, utility re-meter gaps, admin fee caps understated, insurance captive recovery mistakes, tax reassessment pass-throughs missed.

Annual audit cycle?

Reconcile recoveries against lease terms every quarter. Annual tenant audits often reveal 2-5% of billings as errors — both over and under. Proactive review shortens disputes.

Capturing all recoverables?

Track gross-up provisions for occupancy below stabilized. Variable expenses should be grossed to 95% occupancy before allocation. Missed gross-up = permanent leakage.

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.