TI Amortized In Rent Calculator

Landlord amortizes TI via rent. This calculator sizes bump.

TI amount

Lease years

Amortization rate %

Monthly rent bump

$5,460

Annual bump per SF

Total repaid over term

$655,169

How the math works

Monthly bump = TI × (r/12) / (1 − (1 + r/12)^−months). Standard amortization formula.

On $450k TI over 10 years at 8%: $5,460/month bump = $5.46/SF/yr on 12k SF. Total repaid: $655k ($205k interest). Effectively a secured loan — landlord should still run pro forma on TI ROI vs opportunity cost of capital deployed elsewhere.

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 TI Amortized In Rent Calculator is built to give a quick, browser-based estimate for ti amortized in rent. Landlord amortizes TI via rent. This calculator sizes bump. 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 ti amortized in rent 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 ti amortized in rent 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 TI amount.
Enter lease years.
Enter amortization rate %.
Enter SF.
Read monthly rent bump.

Frequently Asked Questions

Why amortize?

Large TI (> $15/SF) often amortized in rent rather than paid up-front cash. Landlord treats as loan to tenant: repaid with interest over lease term. Tenant avoids lump sum; landlord earns return on capital deployed.

Rate used?

Amortization rate typically 6-9% depending on market, tenant credit, lease term. Insti landlord: 7-8% for credit tenant, 9-10% for mid-credit. Below-market TI amortization: effectively subsidized loan — common value-add trade during lease-up.

Acceleration?

Early termination: unamortized TI becomes due. Often included in termination fee calculation. Mid-lease TI addition (tenant requests): re-amortize from that date over remaining term. Landlord tracks unamortized balance.