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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.

Current rent (monthly)

Renewal rent (offered)

Market rent if you turn

Expected vacancy days on turn

Make-ready cost

Leasing commission

Half-month typical

Marketing & screening cost

Renewal incentive offered

Cash, upgrade, or cap

Comparison horizon (months)

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.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Lease Renewal vs Turnover Calculator is built to give a quick, browser-based estimate for lease renewal vs turnover. 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. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the lease renewal vs turnover result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this lease renewal vs turnover estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

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.