Sale And Leaseback Value Calculator

Work out sale and leaseback value instantly with clear inputs, formula shown and shareable results.

About Sale And Leaseback Value Calculator

In a sale and leaseback the price is set by capitalising the rent the seller agrees to pay: a lower cap rate means a higher price but a rent commitment that must be sustained. Netting transaction costs and comparing with book value gives the accounting gain, and the rent as a share of net proceeds is effectively the cost of the capital raised.

Formulas

Sale price

Price = annual rent / capitalisation rate

Net and gain

Net = price x (1 - transaction costs); gain = net - book value

Worked example

With the default values below, Sale And Leaseback Value Calculator returns Gross sale price of $71,428,571.43. Change any input above and every figure here is recalculated in your browser.

Inputs used

Rent under the leasebackminimum 0: 5,000,000
Investor capitalisation rateaccepts 0.5–20 %: 7 %
Transaction costsaccepts 0–10 %: 2 %
Book value of the assetminimum 0: 50,000,000

Results

Gross sale price: $71,428,571.43
Net proceeds after costs: $70,000,000.00
Accounting gain on sale: $20,000,000.00
Rent as share of net proceeds: 7.14% %

Step by step

1Values used
2Sale price
3Net and gain
4Gross sale price= 71,428,571.43
5Net proceeds after costs= 70,000,000.00
6Accounting gain on sale= 20,000,000.00
7Rent as share of net proceeds= 7.14 %

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or tax into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Sale And Leaseback Value figure worked out?

Price = annual rent / capitalisation rate. In a sale and leaseback the price is set by capitalising the rent the seller agrees to pay: a lower cap rate means a higher price but a rent commitment that must be sustained.

Is a high price always good for the seller?

No. Price and rent move together, so pushing the price up means agreeing a higher rent for the whole lease term. It is a financing decision, not just a disposal.

What values do I need to enter?

This calculator takes 4 inputs: Rent under the leaseback, Investor capitalisation rate, Transaction costs, Book value of the asset. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.