Budget next year and set each tenant's monthly estimate.
Start from last year's actual costs, grow each account or enter its new contract amount, and see next year's budget by month. The same budget becomes each tenant's monthly CAM, tax and insurance estimate, with its cap and admin fee applied.
- Cost
- Free
- Not needed
- File
- Excel (.xlsx)
- In the browser
- Works here too
The budget and CAM estimate builder
The year and the building
The average for the year
Empty for none
Last year's costs and next year's budget
Tenants, caps and admin fees
Empty for none
Empty for none
Empty for none
Optional, for NOI
Optional
The budget and the estimates
Tenant A: $4,318.90 a month. Tenant B: $2,660.50 a month. Tenant C: $1,773.67 a month.
Operating budget
$106,515.00
Up $8,015.00 from last year
Recoverable
$101,880.00
Tenants' estimates
$105,036.75
For the year, admin fees included
NOI
$558,521.75
About $7,979,000 at a 7% cap rate
| Tenant | Annual | Months 1 to 11 | Month 12 | Cap ceiling | Room under the cap |
|---|---|---|---|---|---|
| Tenant A | $51,826.75 | $4,318.90 | $4,318.85 | $18,742.50 | $1,257.50 over |
| Tenant B | $31,926.00 | $2,660.50 | $2,660.50 | No cap | |
| Tenant C | $21,284.00 | $1,773.67 | $1,773.63 | No cap |
| Account | Last year | Next year | Change | A month | Month 12 |
|---|---|---|---|---|---|
| Landscaping | $12,000.00 | $12,600.00 | +5.0% | $1,050.00 | $1,050.00 |
| Parking lot sweeping | $6,000.00 | $6,300.00 | +5.0% | $525.00 | $525.00 |
| Repairs and maintenance | $10,000.00 | $10,500.00 | +5.0% | $875.00 | $875.00 |
| Trash removal | $8,000.00 | $10,600.00 | +32.5% | $883.33 | $883.37 |
| Common area water | $4,000.00 | $5,400.00 | +35.0% | $450.00 | $450.00 |
| Property tax | $40,000.00 | $40,800.00 | +2.0% | $3,400.00 | $3,400.00 |
| Property insurance | $14,000.00 | $15,680.00 | +12.0% | $1,306.67 | $1,306.63 |
| Owner's accounting and legal | $4,500.00 | $4,635.00 | +3.0% | $386.25 | $386.25 |
| Total | $98,500.00 | $106,515.00 | $8,876.25 | $8,876.25 |
How the numbers are worked out.
The formulas
- An account's budget
- last year's actual x (1 + growth), or the contract amount
- A tenant's estimate
- the lesser of (share x controllable budget) and the cap's ceiling + share of other CAM + admin fee + share of taxes and insurance
- Monthly estimate
- annual / 12, rounded; the last month takes the difference
- NOI and value
- NOI = rent + recoveries - operating expenses; value = NOI / cap rate
What it assumes
- Each account is last year's actual grown by a rate, or a set amount such as a new contract.
- Estimates follow the same rules as the year-end reconciliation: share, gross-up at the expected occupancy, cap, base year and admin fee.
- Monthly amounts are the annual amount over 12, rounded half up, with the last month taking the rounding so the year adds up exactly.
- The value line is a rough guide: next year's NOI over a cap rate you choose.
Worked example: Tenant A's 2026 estimate
The strip center in 2026 with every suite leased. Controllable CAM budgets to $40,000, water to $5,400, taxes rise 2% and insurance 12%. Tenant A has 50%, a 5% non-cumulative cap on what it was billed in 2025 ($17,850.00) and a 10% admin fee.
| Tenant A, 2026 | Annual |
|---|---|
| 50% of $40,000 controllable CAM | $20,000.00 |
| Capped at $17,850.00 x 1.05 | $18,742.50 |
| Water | $2,700.00 |
| Admin fee, 10% of CAM | $2,144.25 |
| Property tax, $40,000 x 1.02 x 50% | $20,400.00 |
| Insurance, $14,000 x 1.12 x 50% | $7,840.00 |
| Annual estimate | $51,826.75 |
| Months 1 to 11 | $4,318.90 |
| Month 12 | $4,318.85 |
General information to help you check the math, not legal, tax or accounting advice. Your lease controls: where it says something different, follow the lease.
Edge cases and common mistakes.
Edge cases
A sale or new construction
Either can reset the property tax. Budget the new tax amount directly instead of growing last year's.
New tenants mid-year
Budget the year at the occupancy you expect on average; estimates start when each lease does.
A cap already used up
When the budget is above a tenant's cap, its estimate stops at the ceiling and the rest stays with the landlord. The headroom column shows it.
Changing estimates mid-year
If costs move, some leases let the landlord revise estimates. Rebuild the budget and send the new monthly amount.
Common mistakes
Estimating above the cap
An estimate the cap won't allow comes back as a credit at year end. Stop it at the ceiling.
Last year's actuals without the gross-up
If next year will be fuller, last year's variable costs will rise. Budget at the expected occupancy.
Twelve rounded months that don't add up
Twelve times a rounded monthly amount can miss the annual figure by a few cents. Put the difference in the last month.
Questions
How do you calculate CAM estimates for next year?
Budget each operating account for next year, gross up the variable ones to the lease's target if occupancy will be under it, take each tenant's share, apply its cap and admin fee, and divide the year by 12.
Should estimates include the admin fee?
If the lease charges one, yes. Leaving it out means a balance due at year end.
What if the cap leaves the landlord short?
The tenant's estimate stops at the cap's ceiling and the landlord carries the rest. The budget shows how much for each tenant.
Can a landlord change estimates during the year?
That depends on the lease. Some allow a revision when costs change, and some limit how often.
Cornerhold does this from your leases and invoices.
Cornerhold builds the budget from last year's actuals, growth rules and your leases, and turns the recoveries into each tenant's monthly estimate. Owner and Owner Plus start with 14 days free, and you can set up your portfolio in about ten minutes.
The buildings, businesses, people and figures in the examples on this page are made up.