TI Package Amortization Calculator

TI can amortize into rent. This calculator sizes monthly inclusion.

TI total

Amortization years

Interest rate

Space SF

Monthly inclusion

$3,741

Rent uplift $/SF

Total payments

$314,218

How the math works

Monthly inclusion = TI amortized at rate over term. Rent uplift = annualized inclusion ÷ SF.

TI amortized into rent gives landlord a bond-like return and tenant a way to finance significant buildout. Always structure with acceleration protection if the tenant is a meaningful credit risk — full acceleration on early termination is legal but painful enough to sour relationships.

How to Use

Enter TI total.
Enter amortization term years.
Enter interest rate %.
Enter space SF.
Read monthly inclusion and rent uplift $/SF.

Frequently Asked Questions

Amortization mechanics?

TI added to rent as amortized payment over term (with interest). Tenant effectively finances TI through rent. Landlord recovers TI + interest spread. Common structure in mid-size office, when TI budget exceeds landlord allowance.

Interest rate?

Typically 6-10% on TI amortization. Reflects landlord's cost of capital plus risk premium. Rate negotiable; strong tenants can push to 5-7%, weaker tenants to 9-12%. Amortization over full lease term typical.

Break provision?

If tenant terminates early, unamortized TI becomes immediately due. Negotiate cap on acceleration or declining schedule. Full acceleration is punitive — aim for 50% cap or similar moderation clause.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.