Rent increase calculator
Work out the new rent from a percentage or a dollar increase, or enter the new rent to see the increase as a percentage. The results show the yearly difference too, and you can add a cap that applies to the property to check the increase against it.
Your results
EstimateNew monthly rent: $1,680.00
- Increase per month
- $80.00
- Increase as a percentage
- 5.00%
- Extra rent over 12 months
- $960.00
- New rent over 12 months
- $20,160.00
- Highest rent under your cap
- Not available
- State and local rules can limit rent increases and set how much notice you give. Check your state's rules and any local rules where the property is.
Results are estimates for planning only. They are not legal, tax or investment advice, and they apply no state or local rules. Check your lease, your local laws and a qualified professional before you rely on a number.
How a rent increase is calculated
New rent = current rent x (1 + increase percentage); increase percentage = (new rent - current rent) / current rent
A percentage increase multiplies the current rent by one plus the percentage, so 5% on $1,600 gives $1,600 x 1.05 = $1,680. A dollar increase is added to the rent, and the calculator shows it as a percentage of the current rent. If you already have the new rent in mind, enter it to see the increase both ways.
The yearly figures multiply the monthly ones by 12: the extra rent the increase brings in over a year, and the new rent over 12 months.
Some states and cities limit how much rent can rise in a year, require a certain amount of written notice, or both, and the rules vary. Enter a cap if one applies to the property and the calculator shows the highest rent it allows. This calculator applies no state or local rule, so check your state's rules and any local rules where the property is.
Worked example
The current rent is $1,600 a month and you plan a 5% increase at renewal. No cap applies to the property.
- Increase per month: $1,600 x 5% = $80.
- New rent: $1,600 + $80 = $1,680 a month.
- Extra rent over 12 months: $80 x 12 = $960.
- New rent over 12 months: $1,680 x 12 = $20,160.
The new rent is $1,680.00 a month, an increase of $80.00 a month or $960.00 over 12 months.
Frequently asked questions
How do I calculate a rent increase percentage?
Subtract the current rent from the new rent and divide by the current rent. Going from $1,600 to $1,680 is $80 / $1,600 = 5%.
How much can I raise the rent?
It depends on where the property is. A few states, including California and Oregon, cap yearly increases for many rentals, and some cities have rent control or rent stabilization. Where no cap applies, the market and your lease set the limit. Check your state's rules and any local rules before you set the amount.
How much notice do I need to give for a rent increase?
Many states require written notice before an increase on a month-to-month tenancy, often at least 30 days, and some require more for larger increases or longer tenancies. Check your state's rules and your lease for the period that applies.
Can I raise the rent during a fixed-term lease?
Generally the rent stays as the lease states until the term ends, unless the lease itself allows an increase. Most owners plan an increase for the renewal and give notice before the lease ends.
What does the cap field do?
Enter a yearly limit that applies to the property, as a percentage, and the calculator shows the highest rent the cap allows and tells you when the increase is above it. With a 3% cap on $1,600, the rent can rise to $1,648 at most.
Bill the new rent without a spreadsheet
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