Recovery Pool Gross Up Calculator

Recovery pool grosses up to target occupancy.

Actual pool at current occupancy

Actual occupancy %

Target gross-up %

Variable % of pool

Grossed-up pool

$1,343,846

Grossed-up variable

$803,846

Fixed pool

$540,000

How the math works

Variable = pool × variable %. Grossed-up variable = variable × target/actual. Total = grossed-up variable + fixed.

$1.2M × 55% = $660k var. × 95/78 = $804k grossed-up. + $540k fixed = $1.344M grossed-up pool.

How to Use

Enter actual pool at current occupancy.
Enter actual occupancy %.
Enter target gross-up %.
Enter variable % of expenses.
Read grossed-up pool.

Frequently Asked Questions

Pool composition?

Expense pool has fixed + variable components. Only variable portion grosses up (occupancy-sensitive: utilities, janitorial, waste). Fixed (insurance, taxes, landscaping maintenance) stays flat regardless of occupancy.

Mechanics?

Identify variable % of pool. Variable × (target / actual occupancy) = grossed-up variable. + Fixed = total grossed-up pool. Tenant billed from grossed-up pool, not actual. Cleaner calculation than CAM-level gross-up.

Disputes?

Classification of expenses as fixed vs variable. Management fees often unclear. Admin fees debated. Utilities: building-wide (variable) vs suite-specific (fixed with vacancy). Carefully classified at lease signing avoids fights later.

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.