Lease Extension Comparison

If your lease coming up for renewal, and you are wondering if you should extend for 12 month or 7 for example, this calculator will help you out. It is not complicated and uselessly detailed. After all the math is simple. When you sign a lease you get charged some fees, and you might get some incentives. The rent will be different for based on duration. The most common reason of signing a short term lease is "uncertainty", i.e. for some reason you think you might not finish a longer term.

With longer term leases usually there are more incentives and also there is the possibility that you might have to pay penalties if you terminate the contract early. That is really the big determined factor.

	Lease Option 1	Lease Option 2
Duration (months)
Monthly Rent
Incentives
Charges
Penalties

What is in the graph

Click on compare to use the default data first and let us explain it.

The green line is your total monthly cost if you go with the longer term leas.

The orange line, shows you your cost with included penalties, if you terminated the lease at the end of a given month. Note that you might have to not only pay penalties but loose your incentives as well in that case.

The blue line is total cost for the short term rental.In this case it does not cross the orange line, meaning it is cheaper to go with shorter term rather than having to pay the penalties of termination.

The magenta dashed line, tells you how many moths you would have got on the long term lease for what you paid for the short term lease. In this case if paying 7 moths short lease = 11 months long term lease, it is something to consider.