Free tool

Tenant Improvement Allowance Calculator

Compare tenant improvement allowance, estimated build-out cost, tenant contribution, amortization, and total project funding.

Build-out funding

TI funding summary

Additional amortized allowance is treated as landlord-funded principal beyond the base allowance.

Funding itemAmount
Base allowance$200,000
Additional amortized funding$0
Estimated project cost$325,000
Tenant cash requirement$125,000
Unused base allowance$0
Total amortized repayment$0

Planning estimate only. Eligible costs, reimbursement conditions, deadlines, interest conventions, and unused-allowance treatment are controlled by the lease and work letter.

Calculate the TI funding gap

Multiply the negotiated allowance and estimated build-out cost by the applicable area, then compare the totals. The difference shows estimated unused allowance or tenant funding before exclusions and timing rules.

  • Total allowance equals applicable square feet multiplied by allowance per square foot
  • Estimated project cost equals applicable area multiplied by build-out cost per square foot
  • Tenant funding gap is project cost less available allowance, floored at zero
  • Allowance eligibility and reimbursement timing come from the lease

Model amortized additional allowance

Some landlords fund an additional amount and recover it through rent. This calculator estimates a level monthly payment using the entered rate and amortization term.

  • Separate base allowance from amortized additional funding
  • Confirm the interest convention and payment timing
  • Review soft-cost, furniture, cabling, and permit eligibility
  • Track deadlines and documentation required for reimbursement

Citation facts

  • Total TI allowance can be estimated as applicable area multiplied by negotiated allowance per square foot.
  • The tenant funding gap equals estimated eligible project cost less available landlord funding when positive.
  • An amortized allowance estimate depends on principal, rate, payment frequency, and term.
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