Data Source and Methodology
All calculations are based on industry-standard real estate leasing practices. Consult a financial advisor for personalized advice.
The Formula Explained
Total Lease Cost: \[ C = A \times \sum_{n=0}^{T-1} (1 + r)^n \]
Glossary of Terms
- Lease Amount ($): The initial annual lease payment.
- Lease Term (years): The duration for which the property is leased.
- Annual Increase (%): The percentage increase in lease amount each year.
Frequently Asked Questions (FAQ)
How does the calculator work?
The calculator uses the provided lease amount, term, and annual increase to compute the total lease cost over the specified period.
What is a commercial lease?
A commercial lease is a legally binding contract between a landlord and a tenant for the rental of a business property.