Home›Lease Option Calculator

📋 Lease Option Calculator

Analyze lease-option deals: projected value at exercise, tenant-buyer credits accumulated, discount vs market, and seller economics if buyer walks.

📍 Property Address (optional)
InputsYour Numbers
Property & Option Terms
Option Purchase Price?
$
Current Market Value?
$
Monthly Rent?
$
Monthly Rent Credit?
$
Option Fee (upfront)?
$
Option Term (years)?
Expected Appreciation % / yr?
%
Pro Forma (Higher Rent Credit)
Alternative Rent Credit?
$
As-Is AnalysisCurrent
Enter values to see results
Market Value at Exercise
--
projected
Buyer Discount at Exercise
--
market vs option price
Accumulated Credits
--
toward purchase
Option In The Money?
--
worth exercising
Lease Option Economics
Option Purchase Price--
Projected Market Value at Exercise--
Buyer Discount (value - option price)--
Tenant-Buyer Credits Accumulated
Option Fee--
Rent Credits (monthly x term)--
Total Credits Toward Purchase--
Effective Down Payment Built--
Seller Analysis
Monthly Rent Collected--
Monthly Rent Credit Given Back--
Net Monthly Cashflow to Seller--
If Buyer Doesn't Exercise--
Pro FormaAfter Plan
Enter pro forma values
Alt. Total Credits
--
at higher credit
Alt. Net Cash to Seller
--
per month
Buyer Effective Down %
--
credits / option price
Seller Gives Up
--
extra credits vs base
Pro Forma vs Base
Base Total Credits--
Alt. Total Credits--
Extra Credits to Buyer--

📄 Email My Free Report

Full analysis sent to your inbox instantly.

1
Set the Option Price
Typically set slightly above current market (5-10%). Buyer locks in today's price and benefits if the property appreciates during the option period.
2
Set Rent and Credit
Rent is usually at or above market. The rent credit portion is applied toward the purchase. Higher credit incentivizes buyer to exercise; lower credit is better for seller cash flow.
3
Enter the Option Fee
Non-refundable upfront payment. If buyer doesn't exercise, seller keeps the fee. This compensates for taking the property off the market.
4
Model Appreciation
Higher appreciation makes the option more valuable to the buyer (option price locked below market). Lower appreciation may cause the buyer not to exercise.
5
Seller: If Buyer Doesn't Exercise
The calculator shows what you keep if the buyer walks: all rent paid plus the non-refundable option fee. A 3-year lease at $1,800/mo = $64,800 in rent + fee.
6
Buyer: Accumulated Credits
Total credits = option fee + monthly credits x months. These create an effective 'forced savings' plan for buyers who can't qualify for conventional financing yet.

A lease-option (also called rent-to-own) gives a tenant the right -- but not the obligation -- to purchase a property at a predetermined price during a specified period. It's a creative financing tool for sellers who want passive income while building toward a sale, and buyers who need time to qualify for conventional financing.


Seller advantages: above-market rent, non-refundable option fee, motivated tenant who cares for the property. Buyer advantages: locks in price before appreciation, builds equity through rent credits, time to improve credit or save for down payment.


If the market doesn't appreciate as expected, buyers often don't exercise -- keeping the property in seller hands with significant option fee and rent income collected.

📄 Email My Report

Full analysis sent free to your inbox.