Tenant Bankruptcy Rejection Cost Calculator

BK rejection caps landlord claim. This calculator sizes allowed damages.

Annual rent

Years remaining

Re-lease annual rent

Downtime months

Allowed claim (502(b)(6))

$252,000

Statutory cap

$252,000

Mitigation gap

$118,000

How the math works

Cap = max(1 yr, 15% × years, capped at 3 yr). Claim = min(cap, actual damages).

On $240k rent × 7 years remaining: statutory cap = max(240k, 252k) capped at 720k = $252k. If actual damage exceeds cap, mitigation gap is uncollectible from BK estate. Security deposits and guaranties provide recovery outside the 502(b)(6) cap.

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 Tenant Bankruptcy Rejection Cost Calculator is built to give a quick, browser-based estimate for tenant bankruptcy rejection cost. BK rejection caps landlord claim. This calculator sizes allowed damages. 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 tenant bankruptcy rejection cost 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 tenant bankruptcy rejection cost 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 remaining lease rent.
Enter lease term remaining years.
Enter mitigation (re-lease) rent.
Enter downtime months.
Read allowed claim.

Frequently Asked Questions

Section 502(b)(6) cap?

Federal BK code caps lease rejection claim at greater of (a) 1 year rent, or (b) 15% of remaining term up to 3 years. Effectively capped at 3 years regardless of lease length. Landlord also recovers unpaid pre-petition rent without cap.

Practical recovery?

Landlord claim is unsecured. Typical Ch 11 recovery on unsecured: 5-30 cents on dollar. Recovery depends on BK plan. Secured reserves (security deposit, guaranty) recoverable outside 502(b)(6) cap. LOC and guaranties key.

Mitigation?

Re-lease efforts required. Landlord claim offset by rent collected from replacement tenant. Duty to mitigate — not just sit on empty space. Document lease-up marketing efforts for BK court evidence.