Finance category
Mortgage, loan, investing, tax, and money calculators.
Expense Stop Calculator
In a modified gross lease, the landlord covers operating expenses up to a per-SF expense stop and the tenant pays only the over-stop excess. The clause shifts inflation risk to the tenant while protecting the landlord's NOI margin. This calculator computes year-1 over-stop billing and projects future-year billing as opex inflates past the stop.
Year-1 opex baseline
Year-1 over-stop billing
$16,000
Year-1 over-stop / SF
$2.00
Future opex / SF
$13.33
Future-year billing
$30,653
How the math works
Modified gross leases use an expense stop — the landlord covers opex up to a per-SF threshold; tenant pays everything above. Tenants benefit when opex stays flat; landlords win when inflation pushes opex past the stop year over year.
A $9.50 stop with $11.50 actual opex bills the tenant $2/SF over-stop = $16K on 8,000 SF. After 5 years of 3% inflation, opex is $13.33/SF and tenant billing rises to $30,640.
How to Use
- Enter current per-SF opex and the contractual expense stop.
- Enter tenant SF, annual opex inflation, and the projection horizon.
- Read year-1 and future-year over-stop billing.
Frequently Asked Questions
How is the stop set?
Usually the landlord's first-year opex run-rate, calibrated so year-1 has zero over-stop billing. Tenant negotiation focuses on what's included in opex and how the stop is grossed up.
Net vs base year stop?
Base-year stop locks in a specific dollar number for the lease term. Net (or 'expense stop') uses an actual figure that resets each year.
Capped opex inflation?
Tenants negotiate annual opex caps (typically 5%) on top of the stop to protect from runaway operator expense growth.
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Expense Reimbursement Calculator
Commercial lease expense reimbursement — pro-rata share, admin fee, expense stop, and gross-up calculation.
Next calculator
Expense Stop Reconciliation Calculator
Reconcile year-end expense pass-throughs — actual vs estimate, with tenant true-up and admin fee.