# Broker Fee Formula

## Purpose

Convert broker fee formats into a dollar amount and monthly impact.

## Formulas

If none: brokerFee = 0

If flat: brokerFee = brokerFeeValue

If percent of annual rent: brokerFee = monthlyRent * 12 * brokerFeePercent

If months of rent: brokerFee = monthlyRent * brokerFeeMonths

brokerFeeMonthlyImpact = brokerFee / leaseLengthMonths

## Example calculation

$2,300 rent with a 12% annual-rent broker fee: brokerFee = 2300 * 12 * 0.12 = 3312. Monthly impact over 12 months is 276.

## Edge cases

Broker fee definitions vary. Confirm whether the percentage is of annual rent, monthly rent, or another amount.

## Rounding rules

Display as currency, usually rounded to whole dollars.

## Limitations

Does not determine whether a broker fee is legal, negotiable, or refundable.

## Related working tool URL

/tools/apartment-offer-comparison/