How it works
How this tool works.
“One month free” changes the economics of a lease even when the advertised rent does not change. Comparing only the sticker price makes it hard to see what the owner actually collects or what the renter is effectively paying over the full term.
Enter the monthly rent, term, and total concession. The calculator converts them to one averaged monthly effective rent, so a free month and a cash credit can be compared on the same basis.
Enter the advertised monthly rent and the lease term in months.
Combine all free-rent periods and move-in credits into one dollar concession.
The calculator subtracts that concession from scheduled rent for the term.
It divides the result by the lease months to show effective monthly rent and the total discount percentage.
Make the result useful
Rent-concession economics
Advertised rent is the stated recurring lease amount before concessions.
Lease term is the period across which the concession is economically spread.
Concession is the total free-rent or credit amount, not a percentage guess.
Effective rent is useful for comparisons but does not replace the lease’s stated payment schedule.
The assumptions that move this result
Advertised rent
Stated monthly lease rent.
Term
Lease months for the scenario.
Concession
Total approved rent credit.
Effective rent
Average collection per month.
effective rent = (monthly rent × term − concession) ÷ term
Use the output as a documented scenario result, not a guarantee.
Read the number in context
Worked scenario
Scenario: $2,200 × 12 − $2,200 gives about $2,017 effective monthly rent.
Edge case
Edge case: a short term spreads the same credit into a larger monthly discount.
Does not draft concession language or determine lease enforceability.
Before you act
• State credit timing in the lease.
• Compare effective and stated rent.
• Model early-move-out treatment.
Worked formula
effective rent = (monthly rent × term − concession) ÷ term
Is this a forecast?
No. It calculates the assumptions you enter.
Can it replace professional review?
No. Use current records and qualified advice.
What should I save?
Keep the assumptions and source records used for the decision.