Sublease Vs Termination Calculator

Tenants exiting early choose between subleasing and termination. This calculator sizes both.

Remaining obligation

Sublease recovery %

Downtime months

Monthly rent

Sublease costs

Termination fee

Sublease advantage

-$30,000

Sublease net cost

$680,000

Termination net cost

$650,000

How the math works

Sublease net = obligation − recovery + costs. Termination net = fee. Compare directly.

The sublease path is usually superior when market rents hold up, but tenants underestimate downtime and friction. Apply realistic recovery percentages (60-80% on average markets, not 90%+) and real broker/legal/landlord-consent costs before concluding sublease dominates.

How to Use

Enter remaining lease obligation.
Enter expected sublease rent %.
Enter sublease downtime months.
Enter sublease costs.
Enter termination fee.
Read net cost of each path.

Frequently Asked Questions

When sublease wins?

Market rents at or near contract rent, low vacancy, manageable downtime. Sublease preserves economics while shifting occupancy. Typical recovery 70-95% of original rent when market is healthy.

When termination wins?

Market rents well below contract, long projected downtime, landlord willing to settle. Termination fee often 6-12 months rent in office, 3-8 months in industrial. Compares favorably when sublease recovery would be under 50%.

Hidden sublease costs?

Broker commission (3-6% of total sublease rent), marketing, staging, landlord consent fees, legal. Budget 5-10% of gross sublease value for all-in friction. Some leases require lease-profit sharing, which further compresses net economics.