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Sale Leaseback Economics Calculator

Sale-leaseback unlocks cash. This calculator sizes.

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Net cash unlocked

$12,480,000

Tax on sale

$2,520,000

Total rent PV (8%)

$10,309,055

How the math works

Net cash = sale − tax on gain. Rent PV = 20-year discounted rent obligation.

$15M sale, $6M basis: $2.52M tax. Net cash $12.48M. 20-year rent at $1.05M/yr, 8% discount: $10.3M PV. Net-net unlocks ~$2.2M in economic value if cash deployed productively.

How to Use

  1. Enter sale price.
  2. Enter cost basis.
  3. Enter tax rate %.
  4. Enter annual rent back.
  5. Enter lease years.
  6. Read cash unlocked and lease NPV.

Frequently Asked Questions

Why SLB?

Unlock trapped equity. Remove real estate from balance sheet. Raise cash for operations without debt. Tax-deductible rent vs non-deductible depreciation. Strategic decision for operating companies holding owned real estate.

Typical structure?

15-25 year triple-net lease with renewal options. Rent set at market (no subsidy). Buyer (investor): yield play. Seller (operator): operational flexibility. Common for corporate HQ, manufacturing facilities, retail flagships.

Tax implications?

Sale triggers capital gains + depreciation recapture. Rent deductible as business expense. Leverage lost from mortgage (if owned). Full economic analysis required — sometimes net-net favorable; sometimes not. Work with CPA.

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.

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