Arrears Payment Plan Calculator
Work out how long a rent arrears repayment plan takes, how much is recovered before the tenancy ends, and whether it is affordable.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →A payment plan is usually better for both sides than possession proceedings, but only if it actually clears the arrears within the time available. A plan that would take three years on a tenancy with one year left is not a plan, it is a delay.
Affordability matters as much as arithmetic. An additional payment that takes total housing costs beyond what the tenant earns will fail, and a failed plan leaves the arrears larger than when it started.
The calculation
Months to clear = arrears ÷ the extra monthly payment, rounded up. Recovered by the end of the tenancy is that payment across the months remaining, capped at the arrears. Anything left is what remains outstanding when the tenancy ends and enforcement becomes much harder.
Worked example
Arrears of 3,600 with 150 a month extra takes 24 months to clear. With only 12 months left on the tenancy, 1,800 is recovered and 1,800 is still owed at the end. The extra payment is 10% of the rent on top of the rent itself.
Match the plan to the time available
Where the plan runs past the tenancy, the choices are a larger monthly payment, a longer tenancy, or accepting that part will not be recovered. Agreeing a renewal alongside the plan frequently solves it and keeps a paying tenant in place.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
What monthly amount is realistic?
Something the tenant can sustain alongside the rent, commonly five to fifteen percent of the rent. A plan set too high fails within months and leaves both sides worse off than a slower one that holds.
Should the plan be in writing?
Always. A dated written agreement setting out the amount, the schedule and what happens on a missed payment protects both parties, and courts in most jurisdictions look favourably on a landlord who offered one.
What if the plan fails?
Act quickly rather than letting arrears rebuild. Reassess whether the tenant circumstances have changed, and if the shortfall is structural rather than temporary, the arithmetic on pursuing versus ending the tenancy is what should drive the decision.