How to use this calculator
- Enter or choose starting monthly rent.
- Enter or choose increase by.
- Enter or choose increase every.
- Enter or choose lease term.
- The total rent over the lease updates as you type. Use Copy result or Share to keep it.
Method
Rent in month m = Rent₀ × (1 + p)^⌊m ÷ interval⌋ (percentage) or Rent₀ + a × ⌊m ÷ interval⌋ (fixed amount); Total = Σ rent over all months
- Rent₀
- starting monthly rent
- p, a
- percentage or fixed increase per step
- m
- month number counted from 0
Worked example
- Monthly rents by year: 2,000; 2,060; 2,121.80; 2,185.45; 2,251.02.
- Total = 12 × (2,000 + 2,060 + 2,121.80 + 2,185.454 + 2,251.018) = 127,419.26.
- Average = 127,419.26 ÷ 60 = 2,123.65 a month.
A 2,000 rent rising 3% a year reaches 2,251.02 in year 5, and the five-year lease costs 127,419.26 in total.
What the result means
Use the average monthly rent to compare a lease with escalations against one with a flat but higher starting rent.
Assumptions and limits
- Increases take effect at the start of each interval, counted from the lease start.
- Percentage increases compound on the current rent.
- CPI-linked reviews, caps and collars, and service-charge changes are not modelled; landlords may round each new rent.
Questions
Is a 3% increase applied to the original rent or the current rent?
Usually the current rent, so increases compound. If your lease applies it to the original rent, choose a fixed amount equal to 3% of the starting rent.
Can I model an increase every two years?
Yes. Set “Increase every” to 24 months.
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.