Rent Increase Calculator Formula

Understand the math behind the rent increase calculator. Each variable explained with a worked example.

Use the Rent Increase Calculator

Formulas Used

New Monthly Rent

new_rent = current_rent + increase_amount

Monthly Increase Per Unit

monthly_increase = increase_amount

Total Annual Income Increase

annual_income_increase = increase_amount * 12 * num_units

Variables

VariableDescriptionDefault
current_rentCurrent Monthly Rent(USD)1800
increase_pctRent Increase(%)4
num_unitsNumber of Units1
increase_amountDerived value= current_rent * increase_pct / 100calculated

How It Works

Calculating Rent Increases

Rent increases are typically expressed as a percentage of current rent.

Formula

New Rent = Current Rent x (1 + Increase%)

Annual Impact = Increase Amount x 12 x Units

Considerations

  • Check local rent control laws before increasing
  • Typical annual increases range from 2-5%
  • Large increases may cause tenant turnover, which has its own costs

    • Worked Example

    A landlord increases rent by 4% on a $1,800/month single unit.

    current_rent = 1800increase_pct = 4num_units = 1
    1. 01Increase amount: $1,800 x 4% = $72
    2. 02New monthly rent: $1,800 + $72 = $1,872
    3. 03Annual income increase: $72 x 12 x 1 = $864

    Ready to run the numbers?

    Open Rent Increase Calculator