CREOP · Property tools

Ground lease rent schedule calculator

Project annual base rent with a fixed percentage increase, and optionally discount those payments to the start of the term. Enter the assumptions you want to illustrate.

Build a rent schedule

The filled values are an example: $100,000 a year for 10 years, increasing 10% after each five full years. Change them to test your assumptions. All amounts are in USD.

Fixed escalation assumptions
Initial full-year rent, from $0 to $1 billion.
1 to 200 full years; no partial years.
0% to 100% applied to the previous rent at each increase.
1 to 200 full years. For annual increases, enter 1.
0% to 100%. Leave blank to omit present value; 0% produces PV equal to total rent.

Only full-year base rent and fixed increases are modeled. For PV, rent is treated as paid at each year-end, even if an actual lease pays monthly or in advance. Total modeled rent is limited to $1 trillion. Inputs are calculated in your browser.

Worked example: a 10% increase every five years

At $100,000 initial annual rent for a 10-year term, years 1–5 are $100,000 each. Years 6–10 are $110,000 each. Total modeled base rent is $1,050,000. An annual 10% increase would produce a different schedule; the interval matters.

How the calculation works

For lease year y, rent = initial annual rent × (1 + increase rate)floor((y − 1) / interval). The increase rate is the entered percentage divided by 100. Add all annual rents to obtain the undiscounted total.

Optional PV = the sum of each annual rent divided by (1 + annual discount rate)y. The discount rate is also a percentage divided by 100. The calculation treats payments as positive amounts and places them at the end of each year. See Microsoft's explanation of end-of-period discounting for the timing convention.

What to check against an actual lease

Confirm the start date, payment timing, escalation dates, renewal options and treatment of partial periods. This tool excludes CPI changes, market resets, percentage rent, minimums and caps, taxes, insurance, operating expenses, purchase options, financing and residual value.

The PV of base-rent payments is one cash-flow calculation. It does not value the land, the leasehold or a purchase alternative. Those questions require a broader model and review of the actual agreement. Our ground lease guide explains the structure and terms to review.

Ground lease calculator questions

When does the first rent increase occur?

After the entered number of full lease years. With a five-year interval, the initial rent applies in years 1 through 5 and the first increase applies in year 6.

What does the present value result mean?

It is the discounted sum of the modeled base-rent payments, using your annual discount rate and one payment at each year-end. It does not determine the value of the land, the leasehold or the whole investment.

Does the calculator model CPI or market-rent resets?

No. It uses a constant percentage increase at a fixed interval. CPI-linked changes, market resets, floors, caps, options and other negotiated terms require a model built from the actual lease.

Present the assumptions with the property

Include the relevant lease terms, source dates and qualifications when marketing a leasehold interest. Explore CREOP's offering memorandum software for organizing reviewed property information.