Rent Abatement Breakeven Calculator

Rent abatement and rate cuts trade off. This calculator finds equivalence.

Rate cut %

Base rate $/SF

Term years

Space SF

Equivalent free months

5.76

Rate cut value

$153,600

Monthly rent

$26,667

How the math works

Rate cut value = annual rent × years × cut %. Equivalent free months = value ÷ monthly rent.

An 8% rate cut on a 6-year lease equates to ~6 months of free rent. Landlords typically offer the free rent framing; tenants benefit from converting to rate-cut to compare directly across competing offers and understand the true economic value.

How to Use

Enter proposed rate cut %.
Enter base rate/SF.
Enter lease term years.
Enter space SF.
Read equivalent free months.

Frequently Asked Questions

Why convert?

Tenants and landlords often negotiate in different units. Landlord says '2 months free.' Tenant says '5% rate cut.' Economics may be same or different — convert to compare apples to apples.

Term sensitivity?

Longer terms = rate cut grows relative to free rent. 5% off $30/SF for 10 years = $15/SF total concession. 2 months free rent = $5/SF. Rate cut 3x more valuable at 10-year term.

Face rate preference?

Landlord usually prefers free rent (face rate preservation for comps). Tenant usually prefers rate cut (steady cash flow benefit). Both can live with either — but start with understanding what counterparty wants.