Tenant Improvement Recapture Calculator

Early termination or assignment can trigger TI recapture. This calculator sizes the unamortized balance.

TI contribution

Lease term (months)

Months elapsed

Recapture rate

Recapture owed (w/ interest)

$130,206

Unamortized balance

$115,714

Monthly amortization

$2,143

How the math works

Unamortized = (TI ÷ term) × remaining months. Recapture adds an interest factor.

Negotiate a recapture cap at lease signing — say, 50% or a declining schedule that drops to zero by year 5. Unlimited recapture inside a 10-year lease is a trap; enforceable but a major friction point if the tenant's business model shifts.

How to Use

Enter total landlord TI contribution.
Enter lease term months.
Enter months elapsed.
Enter interest rate on recapture.
Read recapture owed.

Frequently Asked Questions

Why recapture?

Landlord TI packages are amortized over base lease term — landlord underwrites as if tenant stays full term. Early exit short-circuits amortization; recapture recovers the unamortized balance as a lump-sum termination fee.

With or without interest?

Modern leases specify interest on recapture (5-10%) to reflect opportunity cost. Older leases often recapture straight-line without interest. Both show below.

Assignment vs termination?

Assignments often waive recapture if new tenant is equivalent credit. Terminations almost always trigger full recapture. Subleases sit in between — partial recapture or profit-share clauses common.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.