Cumulative vs Non-Cumulative CAM Caps (with Examples)
A CAM cap limits the yearly increase in a tenant's controllable operating expenses. The three common versions differ in what they compare against.
- Non-cumulative (year-over-year): this year ≤ last year's charge × (1 + cap%). Unused room is lost.
- Cumulative, simple: this year ≤ base year × (1 + cap% × years since base).
- Cumulative, compounding: this year ≤ base year × (1 + cap%)years. Unused room carries forward and compounds.
| Base-year controllable charge | $5,000 |
|---|---|
| 5% non-cumulative, year 3 (prior year billed $5,100) | limit $5,355 |
| 5% cumulative simple, year 3 | limit $5,750 |
| 5% cumulative compounding, year 3 | limit $5,788 |
Caps typically exclude taxes, insurance, utilities, snow and ice removal, and costs mandated by law — the lease lists them. Whether the admin fee sits inside or outside the cap also changes the result; CamProof lets you choose per tenant.
Try it in the CAM cap calculator.