Finance category
Mortgage, loan, investing, tax, and money calculators.
Tenant Improvement Allowance Calculator
Tenant improvement (TI) allowance is the landlord-funded build-out budget delivered as part of the lease. It's amortized over the lease term and effectively converts to a rent reduction. This calculator sizes total TI, the per-year amortized cost, the percent it consumes of contract rent, and how many months of base rent it takes to recoup — letting both landlords and tenants pressure-test the deal.
$30-100/SF typical office
Total TI allowance
$520,000
TI amortized / yr
$74,286
TI as % of total rent
29.02%
TI payback (years of rent)
2.03
TI as % of PV rent
39.01%
How the math works
TI (tenant improvement) allowance is the landlord's contribution to building out tenant space — paid as construction progresses. It's amortized over the lease term and effectively becomes a rent reduction. A $65/SF TI on 8,000 SF over 7 years = $520K total, recovered through ~28% of contract rent.
Tenants who need build-out beyond TI pay an 'overstandard' charge. Landlords who give too much TI relative to lease term destroy lease economics.
How to Use
- Enter rentable SF, TI per SF, lease term, and base rent per SF.
- Enter the landlord's discount rate (8-10% typical).
- Read total TI, amortized annual cost, TI as a percent of rent, and PV impact.
Frequently Asked Questions
Typical TI ranges?
Office second-gen $20-40/SF; first-gen and gut $50-100/SF; medical and lab $100-300/SF; warehouse $5-20/SF; retail $20-60/SF.
Who controls the construction?
Landlord-led ('turnkey') is common for shorter terms; tenant-led ('TI/check') for tech and creative office where tenant designs the space.
Unused TI?
Some leases let unused TI convert to rent abatement; others forfeit it. Negotiate convertibility upfront.
Related Calculators
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