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Rent Increase Calculator

A rent increase in money rather than percent, and where repeated increases lead. Ten percent a year doubles the rent in seven and a half years, which a single year of the increase does not make obvious.

Also called: rent hike calculator, rent escalation.

₹
%
%
years
New monthly rent
₹27,500

₹27,500 a month, ₹2,500 more, or ₹30,000 a year. No cap applies to this increase. Repeated for 5 years it reaches ₹40,263.

Monthly increase
₹2,500
Annual increase
₹30,000
Rent after your projection
₹40,263
Total rent over the period
₹20,14,683
Against any cap
No cap applies to this increase.
How this is calculated
Method and background

How this is calculated

One increase is a multiplication. The projection is the useful part: rent compounds, so a ten percent annual increase is not a hundred percent over ten years, it is 159 percent. That is the arithmetic behind the sense that rent runs away, and seeing the five year figure at signing is more informative than the first year one.

rent compounds like anything else raised by a percentage each year
R_0
Current rent (currency)
g
Annual increase (decimal)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

ten percent on 25,000

Current monthly rent
₹25,000
Increase proposed
10%
Legal cap, if any
0%
Project forward
5 years

New monthly rent₹27,500

25000 * 1.1^5, computed independently

Open this example

a cap limits the increase

Current monthly rent
₹25,000
Increase proposed
15%
Legal cap, if any
7%
Project forward
5 years

New monthly rent₹26,750

boundary: 7% applied rather than 15%

Open this example

no increase leaves the rent

Current monthly rent
₹25,000
Increase proposed
0%
Legal cap, if any
0%
Project forward
5 years

New monthly rent₹25,000

degenerate case

Open this example

Method and limits

What it assumes

  • The same percentage every year for the projection.

What it deliberately does not model

  • Rent control rules and permitted increase frequencies vary by jurisdiction and are not applied beyond the cap you enter.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Is a ten percent annual increase normal?
It varies enormously by market. What is worth knowing is where it leads: ten percent a year doubles rent in about seven and a half years, so it is a much larger commitment than the first-year figure suggests.