Free tool
Concession cost calculator
Weeks free or months free, the offer looks small until you spread it across the lease. Put in your numbers and see the real cost.
How it works
Enter the monthly rent, the lease term and the concession. Weeks free are worked out as rent times 12, divided by 52, for each week. Months free are rent times the number of months. A flat amount is used as typed.
The total concession is subtracted from the full value of the lease (rent times the term). Dividing what is left by the number of months gives the effective monthly rent. Multiplying that by 12 gives the effective annual rent.
The comparison shows the rent cut that would hand the resident the same savings. Both routes collect the same total over the lease. The concession keeps your face rent on the books, which matters when the resident renews and when the rent roll is reviewed.
Frequently Asked Questions
What is effective rent?
Effective rent is the rent you actually collect per month after concessions are spread across the lease. It is the lease value minus the concession, divided by the number of months.
How are weeks free counted?
A week free is one fifty-second of a year of rent, so one week on a $1,800 unit is about $415. Some properties count a week as a quarter of a month instead. Use the months free option if that is how you quote it.
Is a concession better than lowering rent?
It depends on your goals. The savings for the resident are the same over one lease. A concession keeps the face rent intact, which supports renewal pricing and the numbers lenders and buyers look at. A rent cut can be simpler to explain and may suit a longer-term strategy. This calculator shows the numbers so you can decide.
Does this include the cost of vacancy?
No. It only measures the concession against the lease. To see what an empty unit costs you, use the turnover cost calculator.
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