Submetering Payback Calculator

Submetering recovers utility cost. This calculator sizes.

Unit count

Install cost per unit

Monthly recovery per unit

Admin cost per unit/month

Useful life years

Payback months

11.3

NPV over life

$666,900

Total install cost

$67,500

How the math works

Net per unit = recovery − admin. Total monthly net = units × per-unit net. Payback = total install / monthly net.

150 units × $450 = $67.5k install. Net $40/unit × 150 = $6k/month. Payback 11.3 months. Huge positive — any owner with metered utilities being absorbed should install.

How to Use

Enter unit count.
Enter install cost per unit.
Enter monthly recovery per unit.
Enter admin cost per unit.
Enter useful life years.
Read payback and NPV.

Frequently Asked Questions

What submeter?

Water, electric, gas — each by individual unit vs bulk. Water submeter: typical $250-500/unit install. Electric submeter: $300-800. Gas: similar to water. Total recovery potential: $40-100+ per unit per month depending on consumption and price.

Regulatory?

Varies by state. California strict (sub-metering must pass through at cost, no markup). Texas flexible. Some cities require specific tenant disclosures. Review local law before installing — compliance cost real.

Admin?

Monthly meter read (automated or manual). Billing generation. Dispute resolution. Vendor fees 10-15% of billed. Landlord-managed in-house: $5-10/unit/month operational. Outsourced: $3-8/unit/month but less landlord labor.

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.