Rent Increase Calculator

You can use this calculator to determine or confirm whether proposed rent increases are legal.

Using the Rent Increase Calculator

Simply input the starting rent amount and the each subsequent percentage rise in rent. The calculator will handle the rest.

Rent Increase Calculator
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How to Calculate the New Rent Following a Given Percentage Increase

After a rent rise, the dollar increase of the new rent is calculated by multiplying the original rent by the increase. The original rent is then increased by the dollar amount. The steps are outlined below. Let's say you have a 3.2% increase on a $1500 rent:

  1. Divide the percentage value (3.2%), which is in decimal form, by 100. Example: 3.2/100 = .032
  2. To determine the increase in monthly dollars, multiply the initial rent by the rent increase. Example: $1,500 × .032 = $48
  3. To calculate the new rent following the increase, add the amount the rent will be increased by to the original rent. As such, in this case, $1,500 + $48 = $1,548.

How to Determine the Legal Base Rent After Multiple Rent Increases

The calculation process for several raises follows the same general guidelines as a single increase. The new rent amount is obtained by finding the percentage multiplier, applying it to the current rent, and then adding it back to the initial rent. You simply repeat the process for subsequent increases, but will start with the basic rent specified in the contract. And we only permit legal rent hikes.

If the lease's base rate was $1,500, we can determine any further authorized rent increases using the algorithm below:

The new rent was $1,548 due to a 3.2% rise in year 2. (3.2 is divided by 100 for a .032 multiplier; then that multiplies the $1,500 rent to get an increase of $48. The new rent of $1,548 is created by adding that back to the initial rent.)

The new rent was $1,574.32 in year 3 due to a 1.7% rise. 1.7 divided by 100 yields a multiplier of .017, which multiplies the $1,548 rent to yield a rise of $26.32 in cost. To arrive at the new rent of $1,574.32, that is added back to the previous rent.

And so forth. A reminder that the increases must be adequately disclosed and cannot exceed the current upper limit.

Rent Increase Formula

This rent increase calculator uses the following formula to determine the rent after the increase:

New Rent = Original Rent + (Original Rent × Percentage of Increase)

You may also be interested in our Prorated Rent Calculator or/and Rent Split Calculator

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