Lease Renewal vs Turnover Calculator
Compare renewal economics against turnover economics with vacancy and leasing friction built in.
Quick answer: this tool compares the same analysis window under two paths. Renewal includes your new rent and incentive cost; turnover includes vacancy drag plus turnover and leasing costs. The net difference shows which path currently has the edge.
Lease decision assumptions
Educational notice
This calculator is educational and not legal or financial advice. Confirm local market demand, leasing lead times, and lease-law requirements before finalizing strategy.
Formulas used
- Renewal Monthly Rent = Current Rent × (1 + Renewal Increase %)
- Renewal Total Income = Renewal Monthly Rent × Analysis Months - Renewal Incentive
- Turnover Total Income = Market Rent × (Analysis Months - Vacancy Months) - Turnover Costs - Leasing Costs
- Net Advantage of Renewal = Renewal Total Income - Turnover Total Income
- Break-Even Market Rent = (Renewal Total Income + Turnover Costs + Leasing Costs) ÷ Occupied Months
Close-call recommendation is used when net difference is inside a small threshold and operational risk may matter more than pure math.
Net Advantage of Renewal
$4,806
Recommendation: renew
Renewal currently has the stronger expected net result.
Close-call threshold: approximately $250.
Renewal monthly rent
$2,288
Renewal total income
$26,956
Turnover total income
$22,150
Break-even market rent
$2,887
AI Renewal vs Turnover Insights
Scenario summary
FAQ: lease renewal vs turnover calculator
When does renewal usually beat turnover financially?
Renewal often wins when vacancy, make-ready, and leasing costs are high relative to the rent premium from turning over to market rent.
What is break-even market rent?
Break-even market rent is the monthly market rent needed for the turnover path to match the renewal path after vacancy and turnover costs.
Why include an analysis period in months?
A defined analysis period keeps both scenarios comparable over the same window so the recommendation reflects your near-term decision horizon.
Is this tool legal or financial advice?
No. This calculator is educational only and does not replace legal, leasing, or market-specific professional advice.
Ready to fine-tune your lease strategy?
Pair renewal modeling with vacancy and cash-flow tools to pressure test your retention strategy before sending terms.