# TI Allowance Calculator | Free CRE Tool

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# Understand the true cost of tenant improvements

Calculate TI allowance economics including amortization schedules, effective rent impact, and TI versus free rent comparisons.

AmortizationDisbursementEffective rentTI vs. free rent

Runs locally · Nothing is saved or sent to a server

## TI allowances are a core negotiation point

Every office and retail deal involves tenant improvement discussions. Understanding the landlord's true cost and the tenant's effective rent requires modeling that's currently done in ad-hoc spreadsheets.

1.  ### Every deal involves TI discussions
    
    Tenant improvement allowances are a core negotiation point in office and retail leasing. Understanding the true cost requires careful modeling.
    
2.  ### Hidden economics
    
    The real cost of a TI allowance depends on amortization rate, lease term, and whether costs are recaptured through higher rent.
    
3.  ### TI vs. free rent trade-offs
    
    Tenants and landlords often debate TI allowances versus free rent periods without modeling which structure is actually more favorable.
    

## What you can calculate

1.  ### Total allowance calculation
    
    Calculate total TI allowance from per-square-foot amounts and premises size, with disbursement schedules.
    
2.  ### Amortization schedules
    
    Generate amortization schedules for landlord-financed TI, showing principal, interest, and monthly payment amounts.
    
3.  ### Effective rent impact
    
    See how TI concessions affect effective rent, the true cost per square foot after accounting for landlord investment.
    
4.  ### TI vs. free rent comparison
    
    Compare the economic impact of TI allowances against equivalent free rent periods for both landlord and tenant.
    
5.  ### Cost per square foot analysis
    
    Break down total concession packages on a per-square-foot basis for standardized deal comparison.
    
6.  ### Landlord & tenant cost analysis
    
    See total cost from both perspectives, including NPV calculations using the amortization discount rate.
    

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## TI provisions, drafted automatically

LeasePilot generates complete tenant improvement provisions including allowances, disbursement schedules, and work letters.

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