Dilapidation Cost Calculator

Work out dilapidation cost instantly with clear inputs, formula shown and shareable results.

About Dilapidation Cost Calculator

A dilapidations claim starts from the cost of putting the premises back into the state the lease requires, plus the landlord's professional fees. Claims are routinely settled below the served schedule because the landlord's actual loss is capped by the diminution in value of its interest, so a discount of fifteen to thirty percent is normal.

Formulas

Claim

Claim = area x reinstatement rate x (1 + professional fees)

Settlement

Settlement = claim x (1 - negotiation discount)

Worked example

With the default values below, Dilapidation Cost Calculator returns Likely settlement of $1,540,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Demised areaminimum 0.1 ft²: 5,000 ft²
Reinstatement rateminimum 0 per ft²: 350 per ft²
Surveyor and professional feesaccepts 0–30 %: 10 %
Expected settlement discountaccepts 0–60 %: 20 %

Results

Likely settlement: $1,540,000.00
Gross reinstatement cost: $1,750,000.00
Professional fees: $175,000.00
Negotiation discount: $385,000.00

Step by step

1Values used
2Claim
3Settlement
4Likely settlement= 1,540,000.00
5Gross reinstatement cost= 1,750,000.00
6Professional fees= 175,000.00
7Negotiation discount= 385,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Preliminary estimate only. Dilapidations liability depends on the lease covenants and statutory caps; obtain advice from a building surveyor and solicitor.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Preliminary estimate only. Dilapidations liability depends on the lease covenants and statutory caps; obtain advice from a building surveyor and solicitor.

Frequently Asked Questions

How is the Dilapidation Cost figure worked out?

Claim = area x reinstatement rate x (1 + professional fees). A dilapidations claim starts from the cost of putting the premises back into the state the lease requires, plus the landlord's professional fees.

Why is the claim usually reduced?

Statutory rules cap the landlord's damages at the reduction in value of its reversion. If the landlord intends to redevelop or refit anyway, much of the scheduled work has no value to it.

What values do I need to enter?

This calculator takes 4 inputs: Demised area, Reinstatement rate, Surveyor and professional fees, Expected settlement discount. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.