Commission Chargeback Calculator

When a tenant defaults or terminates early, the LL often gets to chargeback part of the leasing commission paid to brokers. This calculator sizes the chargeback.

Total commission paid

Original lease term (months)

Months actually occupied

Commission chargeback

$52,500

Commission earned (prorated)

$22,500

Unearned months

How the math works

Chargeback = commission × (unearned months ÷ original term). Simple prorated formula.

Broker agreement must include this language in writing. Common practice: commission earned in full on lease execution, with chargeback if tenant defaults within first 12-24 months.

How to Use

Enter total commission paid.
Enter original lease term (months).
Enter months actually occupied.
Read commission chargeback.

Frequently Asked Questions

When does chargeback apply?

Tenant defaults before full term. Commission is usually earned on full lease value; early exit = partial refund. Agreement terms vary.

Is it enforceable?

Yes if written in broker agreement. Include specific chargeback formula — prorate by month, days, or custom schedule. Without written clause, chargeback is nearly impossible to collect.

What if broker refuses?

File breach of contract claim; most settle. Courts enforce chargeback clauses routinely. Key is having the written agreement before paying commission.

What does competitive benchmarking look like?

Pull 3-5 comparable properties or units in your submarket from CoStar, Yardi, CIM, or your local broker. Normalize by unit type, class, and age. Your outputs should fall within one standard deviation of the comp-set mean. Outliers are either opportunities or warning signs — dig into why. Monthly benchmarking keeps your portfolio on-market and pricing sharp.