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.

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.