How Much Does It Cost to Break a Lease?

Life throws curveballs. A new job across the country, a relationship that ended, a roommate who disappeared — and suddenly you need out of your lease months before it expires. The first question most renters ask is simple: how much does it cost to break a lease?

The honest answer: it depends on your lease terms, your state, and your landlord. But in most cases, you can expect to pay somewhere between $2,000 and $7,000+, with the national average landing around $4,200. For renters in high-cost cities like New York, San Francisco, or Boston, the total can climb even higher.

This guide breaks down every cost associated with ending a lease early so you know exactly what to expect — and what you can do about it.

The Main Costs of Breaking a Lease

1. Early Termination Fee

Most lease agreements include an early termination clause that specifies a flat fee or a formula for breaking the lease before its end date. The most common structure is a penalty equal to two months' rent, though some landlords charge one to three months.

For a renter paying $1,800/month, that means an early termination fee of $3,600 on the typical two-month penalty. In some markets, landlords use a sliding scale — the earlier you break, the more you pay.

2. Rent Owed Until the Unit Is Re-Rented

In many states, you are legally responsible for rent payments until your landlord finds a new tenant — or until your original lease term ends, whichever comes first. Even in states that require landlords to make a reasonable effort to re-rent the unit (called a duty to mitigate damages), you are still on the hook during the vacancy.

If it takes your landlord two months to find a new tenant at $2,000/month, that is an additional $4,000 you owe — on top of any early termination fee.

3. Security Deposit Forfeiture

When you break a lease, landlords will often apply your security deposit toward unpaid rent or penalties rather than returning it. The average security deposit in the U.S. is around $1,000 to $1,500, though in higher-cost markets it can be one to two months' rent. That is money you will almost certainly not see again if you leave early.

4. Credit Score Damage

If you leave without paying what you owe, your landlord can send the balance to a collection agency. Once that happens, the collection account can appear on your credit report and drop your credit score by 50 to 100+ points. That damaged credit follows you for up to seven years.

5. Legal Fees and Collection Costs

If your landlord takes you to small claims court or hires a collection agency, you may also be responsible for legal fees and court costs. Some leases explicitly state that the tenant is liable for the landlord's attorney fees. These costs can add $500 to $2,000+ to your total bill.

6. Relisting and Administrative Fees

Some property management companies charge a relisting fee to cover advertising the unit, screening new applicants, and processing turnover. These fees typically range from $200 to $500.

Cost Breakdown: What Breaking a Lease Actually Looks Like

Here is a realistic example for a renter paying $1,800/month with six months left:

These numbers shift significantly depending on your rent amount, local laws, and how cooperative your landlord is. In states like California, New York, and Virginia, landlords have a legal duty to mitigate damages by attempting to re-rent the unit, which can reduce the "rent while vacant" portion.

Factors That Affect Your Lease-Break Cost

Your Location

State laws play a huge role. Some states cap early termination fees, require landlords to mitigate damages, or allow tenants to break leases without penalty for specific reasons (military deployment, domestic violence, uninhabitable conditions).

Your Lease Terms

Read your lease carefully. Some leases have no early termination clause at all, which can actually mean you owe rent for the entire remaining term. Others include a buyout option — a set dollar amount you can pay to walk away cleanly.

Time Remaining

The more time left on your lease, the more expensive it tends to be. If you are close to the end of your term, it may be worth simply paying rent through the end rather than incurring break fees.

Local Rental Market

If apartments rent quickly in your area, your landlord is more likely to find a replacement tenant fast — meaning you owe less in vacancy rent. In a slow market, you may be paying rent on an empty apartment for months.

How to Reduce the Cost of Breaking a Lease

Negotiate Directly with Your Landlord

This is the single most effective strategy. Many landlords will negotiate a reduced penalty if you approach them honestly and give plenty of notice. Offer to help find a replacement tenant, leave the unit in excellent condition, or propose a specific buyout amount.

Find a Replacement Tenant Yourself

Finding someone to take over your lease can eliminate or drastically reduce your costs. Post on Facebook Marketplace, Craigslist, or local housing groups. Some landlords will waive the early termination fee entirely if you deliver a qualified replacement tenant.

Give Maximum Notice

The more notice you give, the more time your landlord has to fill the unit. Sixty to ninety days of notice is much better than thirty, and it shows good faith.

Know Your Legal Rights

You may be entitled to break your lease without penalty for reasons such as active military duty (SCRA), domestic violence, landlord harassment, or uninhabitable conditions.

Plan Ahead

Some renters protect themselves with lease-break coverage like LeaseFlex, which covers early termination penalties for a low monthly premium. If you are signing a new lease and know there is any chance your situation could change, getting coverage before you need it is one of the most cost-effective ways to avoid a surprise bill.

Can You Break a Lease for Free?

In some situations, yes:

• Military deployment or reassignment — The federal SCRA allows active-duty military to terminate leases early without penalty.
• Uninhabitable conditions — No heat, mold, pest infestations, or structural hazards may give you grounds for constructive eviction.
• Landlord harassment or illegal entry — Repeated privacy violations can be grounds for lease termination in many states.
• Domestic violence — Many states allow survivors to break leases without penalty with proper documentation.
• Mutual agreement — If your landlord agrees in writing to let you go, you are free and clear.

What Happens If You Just Leave?

1. Your landlord applies your security deposit to unpaid rent and penalties.
2. Any remaining balance is sent to a collection agency.
3. Your credit score drops by 50 to 100+ points.
4. The collection account stays on your credit report for up to seven years.
5. Future landlords see the broken lease on tenant screening reports.

Even if you feel the charges are unfair, it is almost always better to negotiate a reduced amount than to walk away and let it go to collections.

Bottom Line

The cost to break a lease typically ranges from $2,000 to $7,000+depending on your rent, lease terms, and local laws. The biggest line items are the early termination fee and the rent owed while the unit sits vacant.

The good news: these costs are not set in stone. Negotiating with your landlord, finding a replacement tenant, knowing your legal rights, and giving as much notice as possible can all bring the number down significantly.