How to calculate a rent increase
Enter the current rent and the increase as a percentage or a dollar amount to see the new rent and the extra cost per year.
The formula
New rent = current rent × (1 + increase %)
Worked example
$1,800 with a 5% increase becomes $1,890. That is $90 more a month and $1,080 more a year.
How to use this calculator
Type in the rent you pay now. Then enter the increase, either as a percentage or as a dollar amount, whichever your notice states. The rent increase calculator shows the new monthly rent and the extra cost over 12 months. If your area has a rent cap, you can also compare the increase against it.
What the result means
The new rent is what you would pay each month once the increase takes effect. The yearly figure is the monthly difference multiplied by 12, so it shows the full budget impact of saying yes. A percentage tells you how the increase compares with a cap or with past years. A dollar amount tells you what leaves your account. Look at both before you decide.
More examples
The same $1,800 rent at four example increases:
| Increase | New rent | More per month | More per year |
|---|---|---|---|
| 3% | $1,854 | $54 | $648 |
| 5% | $1,890 | $90 | $1,080 |
| 8% | $1,944 | $144 | $1,728 |
| 10% | $1,980 | $180 | $2,160 |
An increase given in dollars
Your notice says rent goes from $1,800 to $1,950. The increase is $150 a month, or $1,800 a year. As a percentage it is $150 ÷ $1,800 × 100 = 8.33%.
Checking against a rent cap
Suppose, as an example only, your city limits increases to 7% a year. On $1,800 the highest allowed rent would be $1,800 × 1.07 = $1,926. A new rent of $1,950 would be $24 over that example cap. Caps, exemptions and the way they are measured differ from place to place, so look up the rule that applies to your address.
What changes the result
Two inputs set the answer: the current rent and the size of the increase. A higher starting rent makes the same percentage cost more. A 5% increase is $50 on $1,000 rent and $125 on $2,500 rent. Increases also build on each other. If $1,800 rises 5% this year and 5% again next year, the second increase is applied to $1,890, giving $1,984.50, not $1,980.
Common mistakes
- Dividing by the new rent. The percentage is always measured against the old rent.
- Adding percentages across years. Two 5% increases come to 10.25% in total, not 10%.
- Looking only at the monthly change. $90 a month sounds small, but it is $1,080 over a year.
- Leaving out fees. If parking, pet rent or utilities are also going up, add them to see the real change in your housing cost.
- Assuming a cap applies. Most places have none, and where one exists some buildings are exempt.
Related calculators
Check whether the new rent still fits your income with the rent affordability calculator and whether you would still pass screening with the 3x rent calculator. If the increase makes you think about moving, the moving cost calculator estimates that side, and the rent vs buy calculator compares renting with owning.
Frequently asked questions
How do I work out the percentage?
(New rent − old rent) ÷ old rent × 100.
Is there a legal limit on rent increases?
It depends on your state and city. Some have rent caps and most do not.
How much notice is required?
Usually 30 to 60 days for a month-to-month tenancy, and longer in some states for large increases. Rent normally cannot change during a fixed lease.
Can I negotiate a rent increase?
You can ask. Landlords weigh an increase against the cost of an empty unit, so a tenant who pays on time has some room to propose a smaller increase or a longer lease at the current rate.
How do I compare an increase with the cost of moving?
Multiply the monthly increase by 12 and set it beside your moving estimate plus any difference in rent at the new place. A $90 increase costs $1,080 over a year.
What is the new rent after two increases?
Apply them one after the other. $1,800 with 5% and then 5% again is $1,800 × 1.05 × 1.05 = $1,984.50.
Does the calculator tell me if an increase is legal?
No. It does the arithmetic and compares the result with a cap you enter. Whether an increase is allowed depends on your lease and your local rules.