Estimate the financial cost of early lease termination — for landlords setting penalties and tenants evaluating their options.
When a tenant asks to break their lease early, both parties need a clear picture of what it costs. This calculator estimates the penalty based on your lease terms — whether that's a flat fee, a set number of months' rent, or the actual lost rent for the remaining term. Having a number in hand makes the conversation more productive and the resolution more likely to be mutual.
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Most lease agreements include an early termination clause that specifies the penalty for breaking the lease — typically 1–3 months' rent. Even without such a clause, landlords in most states have a legal right to recover their actual damages from a lease break.
Most states require landlords to make a reasonable effort to re-rent the unit after a tenant breaks the lease — this is called the duty to mitigate damages. You generally cannot simply let the unit sit vacant and charge the tenant for all remaining months. You must actively market the unit and apply any rent received from a new tenant against what the departing tenant owes.
Tenant breaks a lease with 8 months remaining at $1,500/month. Your lease specifies a 2-month penalty ($3,000). You also expect 4 weeks of vacancy to re-let ($1,500). Total financial impact: $4,500 — but the penalty covers most of the vacancy cost.
Most states allow tenants to break a lease without penalty in specific circumstances: active military deployment (Servicemembers Civil Relief Act), domestic violence situations, uninhabitable conditions, or landlord violations of the lease. Know your state's rules before pursuing a penalty in these situations.