Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Savings from renewing vs turnover
$1,200
Total cost of offering the renewal
$1,700
Estimated turnover cost if they leave
$2,900
Annual rent foregone vs full market
$1,500
Proposed renewal rent
$1,825
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How to use this
- 1Enter current monthly rent ($).
- 2Enter market rent for this unit ($).
- 3Enter rent increase you'd offer at renewal ($).
- 4Enter renewal incentive cost (gift card, discount month) ($).
- 5Enter estimated full turnover cost if they leave ($).
- 6Read your savings from renewing vs turnover on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
When a lease is about to expire, landlords often default to raising rent to full market without considering whether the incremental rent gain is worth the risk of the tenant leaving. This calculator directly compares the cost of a renewal incentive — a small rent discount, a gift card, a minor upgrade — against the full turnover cost you'd pay if the tenant leaves instead, so you can see the exact rent increase threshold above which offering a renewal incentive becomes the cheaper path even though it feels like giving up money.
Worked example
Using the values the calculator loads with:
Inputs
- Current monthly rent: 1750 $
- Market rent for this unit: 1950 $
- Rent increase you'd offer at renewal: 75 $
- Renewal incentive cost (gift card, discount month): 200 $
- Estimated full turnover cost if they leave: 2900 $
Results
- Savings from renewing vs turnover: $1,200
- Total cost of offering the renewal: $1,700
- Estimated turnover cost if they leave: $2,900
- Annual rent foregone vs full market: $1,500
- Proposed renewal rent: $1,825
What each field means
Inputs
- Current monthly rent ($)
- The current monthly rent used in the calculation, measured in $. Starts at 1750 $ so you have a working example on load.
- Market rent for this unit ($)
- The market rent for this unit used in the calculation, measured in $. Starts at 1950 $ so you have a working example on load.
- Rent increase you'd offer at renewal ($)
- The rent increase you'd offer at renewal used in the calculation, measured in $. Starts at 75 $ so you have a working example on load.
- Renewal incentive cost (gift card, discount month) ($)
- The renewal incentive cost (gift card, discount month) used in the calculation, measured in $. Starts at 200 $ so you have a working example on load.
- Estimated full turnover cost if they leave ($)
- The estimated full turnover cost if they leave used in the calculation, measured in $. Starts at 2900 $ so you have a working example on load.
Results
- Savings from renewing vs turnover
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total cost of offering the renewal
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated turnover cost if they leave
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Annual rent foregone vs full market
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Proposed renewal rent
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How much rent increase is too aggressive at renewal?
There's no universal number, but increases above 8-10% meaningfully raise the odds a good tenant starts looking elsewhere, especially if local market rent hasn't moved that much. Match the increase to actual comps and consider phasing in a bigger gap over two renewal cycles rather than one large jump.
Is a renewal incentive really cheaper than raising rent to market?
Often yes, once you price in full turnover cost. A $200 gift card or one discounted month is usually far cheaper than a month of vacancy, make-ready, and a leasing fee, so unless the tenant is a poor fit (chronic late payer, high complaint volume), retention math tends to favor a modest incentive.
When should I let a tenant go instead of retaining them?
When they're consistently late, cause excessive maintenance calls, generate neighbor complaints, or are meaningfully below market with a large gap that a single renewal cycle can't close reasonably. In those cases, turnover cost is worth paying to reset the unit with a better tenant or a market-rate lease.
Does this analysis change for good long-term tenants?
Yes — a tenant who's stayed several years and pays reliably is worth more than the math on a single renewal cycle suggests, since they've already proven low risk and their historical below-market gap has likely been recovered through years of avoided turnover costs. Weight retention more heavily for proven long-term tenants.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Lease Renewal vs Turnover Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/lease-renewal-vs-turnover-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/lease-renewal-vs-turnover-cost" target="_blank" rel="noopener">Lease Renewal vs Turnover Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Lease Renewal vs Turnover Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/lease-renewal-vs-turnover-cost) (2026).