Service Charge Reconciliation Calculator

Work out service charge reconciliation instantly with clear inputs, formula shown and shareable results.

About Service Charge Reconciliation Calculator

Service charge is collected on account against a budget and reconciled to actual expenditure at year end. The tenant's share of actual cost less what it has already paid gives the balancing charge, or a credit where the budget was overstated. The building level variance shows whether the overrun is the tenant's share or a management issue.

Formulas

Balancing charge

Balance = actual expenditure x tenant share - amount paid on account

Variance

Variance = actual - budget, as a percentage of budget

Worked example

With the default values below, Service Charge Reconciliation Calculator returns Balancing charge or credit of $2,700.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Budgeted service charge for the buildingminimum 0: 500,000
Actual expenditureminimum 0: 545,000
Tenant shareaccepts 0.01–100 %: 6 %
Paid on account by the tenantminimum 0: 30,000

Results

Balancing charge or credit: $2,700.00
Tenant share of actual expenditure: $32,700.00
Building level variance: $45,000.00
Variance against budget: 9.00% %

Step by step

1Values used
2Balancing charge
3Variance
4Balancing charge or credit= 2,700.00
5Tenant share of actual expenditure= 32,700.00
6Building level variance= 45,000.00
7Variance against budget= 9.00 %

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.

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

Frequently Asked Questions

How is the Service Charge Reconciliation figure worked out?

Balance = actual expenditure x tenant share - amount paid on account. Service charge is collected on account against a budget and reconciled to actual expenditure at year end.

Can a landlord recover any overspend?

Only if the lease permits and the cost is properly incurred within the recoverable heads. Many leases also require consultation before major works, and failing to consult can bar recovery.

What values do I need to enter?

This calculator takes 4 inputs: Budgeted service charge for the building, Actual expenditure, Tenant share, Paid on account by the tenant. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.