Tenant Improvement Allowance Calculator
Calculate TI build-out costs, landlord allowance coverage, and out-of-pocket expenses.
Inputs
Results
Total TI Allowance
$120,000.00
≈ 8 used cars
Total Build-Out Cost
$165,000.00
≈ 11 used cars
How to Use This Calculator
- Enter Leasable Area in square feet and TI Allowance per SF offered by the landlord.
- Set Actual Build-Out Cost per SF based on contractor estimates for your planned improvements.
- Enter Lease Term in months and Base Rent per SF per year for context.
- Review Total TI Allowance vs. Total Build-Out Cost to see your Out-of-Pocket cost.
- Check Amortized Monthly to understand the effective cost per month of tenant improvements.
- Use Effective Rent Reduction per SF to compare net rent across leases with different TI packages.
How the result changes with Leasable Area
| Leasable Area | Total TI Allowance | Total Build-Out Cost |
|---|---|---|
| 50,090 | $2,003,600.00 | $2,754,950.00 |
| 175,065 | $7,002,600.00 | $9,628,575.00 |
| 325,035 | $13,001,400.00 | $17,876,925.00 |
| 450,010 | $18,000,400.00 | $24,750,550.00 |
What each input means
- Leasable Area
- Total leasable square footage of the space.
- TI Allowance
- Landlord-provided tenant improvement allowance per SF.
- Actual Build-Out Cost
- Estimated actual build-out cost per SF.
- Lease Term
- Total lease term in months.
- Base Rent
- Base rent per square foot per year for lease value context.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersLeasable Area = 3000, TI Allowance = 40, Actual Build-Out Cost = 55, Lease Term = 60 = 5 input(s) provided
- Calculate Total TI AllowanceTotal TI Allowance120000 = $120,000
- Calculate Total Build-Out CostTotal Build-Out Cost165000 = $165,000
- Calculate Out-of-Pocket CostOut-of-Pocket Cost45000 = $45,000
- Calculate Unused AllowanceUnused Allowance0 = $0
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
Related Calculators
The questions that sit next to this one — chosen by subject, including calculators filed under a different category.
Commercial Lease Calculator
Calculate total occupancy cost for NNN, gross, and modified gross leases.
Commercial Real EstateCommercial Property Valuation Calculator
Estimate commercial property value using the income capitalization approach (NOI / Cap Rate).
ContractsLease Negotiation Calculator
Calculate total occupancy cost from lease terms, escalation, free rent concessions, TI allowances, and CAM charges.
Dental PracticeDental Office Lease Calculator
Calculate per-operatory occupancy cost from lease terms, buildout, TI allowance, and CAM charges.
Property ManagementLease Expiration Manager
Plan staggered lease renewals and estimate turnover costs from expiration clustering.
More in Real Estate & Property.