Lease Buyout Cost
Calculator
Results
- Buyout penalty
- 3,200
- Total buyout cost
- 4,400
- Cost of staying to the end of the lease
- 12,800
- Saving vs staying to the end
- 8,400
Property management results
| Buyout penalty | 3,200 |
| Total buyout cost | 4,400 |
| Cost of staying to the end of the lease | 12,800 |
| Saving vs staying to the end | 8,400 |
formula-map diagram
- Buyout penalty
- 3,200
- Total buyout cost
- 4,400
- Cost of staying to the end of the lease
- 12,800
- Saving vs staying to the end
- 8,400
Property management relationship
Formula
Buyout cost = monthly rent × buyout months + moving costs= 3200
Note
This is a simplified model: it applies the standard property-management definition to the numbers you entered. Rent affordability uses a flat share-of-income rule and ignores credit history, local screening criteria and household size. Proration assumes a plain daily rate; your lease or local law may prescribe a different convention (for example a fixed 30-day month). Security-deposit interest is simple interest at the rate you enter, while many jurisdictions set the rate, the compounding and the payout schedule by statute. Income, expense, reserve and escalation figures are straight-line and assume the amounts you enter hold steady; they ignore taxes, depreciation, financing changes, capital events, inflation and market turnover. Lease buyout compares the contractual penalty with the remaining rent only and is not a reading of your lease. These results are general information, not legal, tax or investment advice: check your lease and local tenancy law and consult a qualified professional before acting.
More in Property management
See all →Frequently asked questions
What is typically included in a lease buyout cost calculation?+
A lease buyout cost usually totals the remaining rent obligation for the unexpired term (sometimes discounted to present value), minus any re-letting credit the landlord expects to recover once a new tenant is found, plus any negotiated penalty or early-termination fee specified in the lease. Some calculations also add unamortized costs the landlord fronted, like tenant improvement allowances or leasing commissions.
Why would a landlord accept less than the full remaining rent as a buyout?+
Landlords generally have a legal duty to mitigate damages by re-letting the space, so a buyout that ignores realistic re-letting time and market rent would overstate what a court or negotiation would actually award. Accepting a lower negotiated buyout can also be faster and less risky than pursuing the tenant for the full remaining balance.
How does an early-termination clause change the buyout calculation from a straight lease break?+
If the lease includes a pre-negotiated early-termination clause, the buyout is simply whatever fee or formula that clause specifies (often a set number of months' rent), regardless of how much term remains. Without such a clause, the buyout must be negotiated or calculated from the remaining obligation, which is usually more expensive for the tenant.
Should unamortized tenant improvements be added to the buyout cost?+
Many commercial leases specify that unamortized tenant improvement allowances or leasing commissions become due immediately upon early termination, since the landlord funded those costs expecting to recover them over the full lease term. Whether this applies depends entirely on the specific lease language, so it should be checked rather than assumed.
Does discounting future rent to present value make a meaningful difference in the buyout amount?+
For a short remaining term it makes little difference, but for leases with several years left, discounting can meaningfully reduce the buyout figure compared to simply summing nominal monthly rents. Whether to discount, and at what rate, is often the subject of negotiation between landlord and tenant rather than a fixed rule.