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Real estate & rental

Rental Lease Calculator

Total and effective rent over a lease term, once free months and concessions are counted.

Your numbers

$
$
Moving allowance, waived fees, upgrades.
$
Pet rent, parking, utilities billed back.

Result

Effective monthly rent $2,245.00
Total over the term $26,940
Face value of the lease $28,800
Value given away $2,400
Effective discount 8.33%
Face rent is $2,400.00 but effective rent is $2,245.00 once $2,400 of concessions are spread across the term, a 8.33% discount.

Tenancy rules are set by state and often by city, and they are among the most locally variable areas of law there is. Deposit limits, notice periods, late fee caps, interest on deposits and rent increase restrictions all differ and change. This is arithmetic, not legal advice; check your own jurisdiction before relying on any of it. Effective rent is what the property actually earns; face rent is what appears in the listing and in the comparable data. Concession-heavy markets can show flat face rents while effective rents fall substantially, which is why investors ask about concessions specifically.

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Questions

About this calculator

Why give free months instead of lower rent?

Because face rent feeds comparable data, valuations and future increases. A concession buys occupancy without permanently resetting the headline number.

How should I compare two leases?

On effective rent over the same term. A lease at $2,400 with two months free is cheaper than one at $2,150 with none, over twelve months.

The formula

effective rent = (face value - concessions + other charges) / term in months

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