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PayPerSqft

Sub Lease Calculator

Calculate your sub-leasing profit by comparing the rent you pay to the landlord and the rent you charge the company. See year-by-year breakdown with escalation, ROI, payback period, and total investment analysis.

Rent ArbitrageAnnual EscalationROI & PaybackInvestment Analysis

Sub Lease Calculator

Monthly Breakdown (Year 1)

To Landlord

₹ 0

From Company

₹ 0

Net Monthly Profit

₹ 0

Year-by-Year Schedule

YearMonthly to LandlordAnnual to LandlordMonthly from CompanyAnnual from CompanyGross Profit
Year 1₹ 0₹ 0₹ 0₹ 0₹ 0
Total₹ 0₹ 0₹ 0

How to Use the Sub Lease Calculator

The sub-lease calculator helps you evaluate the profitability of taking a commercial property from a landlord and sub-leasing it to a company at a higher rate. Enter your purchase and sale terms to get instant projections of annual profit, total ROI, and payback period.

Key Features

  • Rent Arbitrage Analysis: Compare the rent you pay to the landlord vs what you charge the company
  • Dual Escalation Tracking: Separate escalation rates and frequencies for landlord and company sides
  • Investment Breakdown: Security deposits, registration costs, and taxes factored into total investment
  • ROI & Payback: See exactly when your investment pays for itself
  • Year-by-Year Projection: Track how profits grow as company escalation outpaces landlord escalation

Understanding Sub-Lease Economics

A successful sub-lease depends on several factors:

  • Per-Sqft Margin: The difference between your purchase price and sale price per sqft determines base profitability
  • Escalation Differential: If your company escalation is higher than landlord escalation, margins widen over time
  • Advance Netting: The deposit from the company offsets part of the deposit to the landlord, reducing capital requirement
  • Break-even Point: Factor in registration and taxes to understand when cumulative profit covers your initial outlay

Why Use PayPerSqft's Sub Lease Calculator?

Our calculator provides a complete financial picture of your sub-leasing opportunity. Whether you're sub-leasing warehouse space, office premises, or a BTS facility, get accurate profit and ROI projections. Download or print your calculations for investor presentations and decision-making.