Finance category
Mortgage, loan, investing, tax, and money calculators.
Lease Renewal vs Turnover Calculator
Renewing a known-good tenant below market looks generous — until you compare it with turnover after vacancy, make-ready, and leasing commission. This calculator shows the 12-month net on both sides so you can make the decision on dollars, not feelings.
Half-month typical
Cash, upgrade, or cap
Renewal net income
$24,350
Turnover net income
$19,127
Turnover cost total
$4,943
Rent lost during vacancy
$1,843
Monthly rent pickup vs renewal
$125
Turnover − renewal
-$5,223
Positive favors turning over
Months to recover turnover cost
3 yr 4 mo
How the math works
Landlords face this every lease cycle: renew a solid tenant below market, or turn the unit to capture market rent and eat a month of vacancy plus make-ready. The math is simple — if the net income over 12 months is higher on the turn side even after costs, turn. If it isn't, renewal with a modest increase plus a small incentive almost always wins.
Rules of thumb: retaining a tenant saves roughly 1 month of rent in combined vacancy and make-ready. If market is less than ~8% above the renewal offer, renewal usually wins. Beyond that threshold, turning over makes sense — but only if you have a high-demand unit and fast re-lease. Always compute on your actual vacancy days, not a market average.
How to Use
- Enter the current rent and the renewal rent you'd offer.
- Enter the market rent if you turn over.
- Estimate vacancy days based on your submarket.
- Enter make-ready, leasing commission, and marketing costs.
- Add any renewal incentive (credit, upgrade, rent cap).
- Set your comparison horizon, usually 12 months.
Frequently Asked Questions
What's the rule of thumb?
If the market rent is less than about 8-10% above the renewal offer, renewing usually wins. Above that, turnover math starts to pencil — but only with fast vacancy and controlled make-ready.
Should I discount renewal rent below market?
Usually yes, by 3-7%. A small discount keeps a performing tenant, avoids vacancy, and preserves optionality. Renewal is cheaper than turnover in most markets.
What's a reasonable renewal incentive?
One to two months of the rent increase. A $75/month increase can be sweetened with a $150-$300 credit or a minor upgrade. It keeps renewal feeling like a win for the tenant.
How do I handle below-market long-term tenants?
Incremental increases — 3-5% annually — work better than one big jump that triggers turnover. A tenant 20% below market is a future turnover problem if you don't close the gap slowly.
Related Calculators
Renewal vs Turnover Calculator
Tenant-side renewal vs move comparison.
Tenant Turnover Cost Calculator
Full turnover cost breakdown.
Tenant Onboarding Cost Calculator
New-tenant onboarding cost.
Make Ready Cost Calculator
Itemize make-ready work.
Rent Roll Vacancy Gap Calculator
Full vacancy and leakage gap.
Tenant Placement Fee Calculator
Placement commission math.
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Lease Renewal Increase Calculator
Right-size the renewal rent against market, rent-control caps, expense growth, and turnover risk to maximize net expected income.
Next calculator
Lease vs Buy Car Calculator
Compare the total cost of leasing versus buying a car with payments, taxes, fees, mileage penalties, and projected resale value.