Estimate a hypothetical lease-exit amount using remaining rent plus a chosen surcharge, or solve for rent, months or surcharge. Select the value to solve for. This model does not determine an actual legal obligation or a landlord-to-tenant buyout offer.

Hypothetical lease-exit model: remaining rent plus a chosen surcharge. This does not determine a legal obligation or a landlord-to-tenant buyout offer; use your actual agreement.

Related Calculators

Tenant Buyout Formula

The calculator preserves this assumed remaining-rent-plus-surcharge model; it is not a universal tenant buyout formula:

TB = (MR × M) + (MR × M × P)

Variables:

  • TB is the tenant buyout amount
  • MR is the monthly rent amount
  • M is the number of months remaining on the lease
  • P is the surcharge as a decimal in this formula. The calculator accepts a percentage: enter 10 for 10%, equivalent to P = 0.10.

To calculate the tenant buyout amount, multiply the monthly rent amount by the number of months remaining on the lease. Then, multiply that result by the penalty percentage. Add the two results together to get the final tenant buyout amount.

What is a Tenant Buyout?

A tenant buyout can be a negotiated payment from a landlord to a tenant to voluntarily vacate. Its amount depends on the agreement and applicable law. The calculator instead models a hypothetical lease-exit cost equal to remaining rent plus a specified surcharge; it does not estimate that negotiated landlord payment or establish either party’s legal rights.

How to Calculate Tenant Buyout?

The following steps outline how to calculate the Tenant Buyout.

  1. First, determine the current monthly rent ($).
  2. Next, determine the number of months remaining on the lease.
  3. Next, calculate the total remaining rent by multiplying the current monthly rent by the number of months remaining.
  4. For this model, add the chosen surcharge to the remaining rent. Discounts and incentives are not included.
  5. After completing the calculations, double-check your answer to ensure accuracy.

Example Problem:

Use the following variables as an example problem to test your knowledge.

current monthly rent ($) = 1500

number of months remaining on the lease = 6; surcharge = 10%. Under this hypothetical model, $1,500 × 6 × 1.10 = $9,900.00.