Rent Increase Calculator
A rent increase looks small as a percentage and large on a lease, and the gap between the two is a matter of arithmetic most people do in their heads — incorrectly. Increases compound: 5% this year and 5% next year is 10.25% over the two, not 10%, and a decade of "just keeping up with inflation at 5%" lifts the rent 63%. This calculator shows the honest path — the new monthly figure, the rent at the end of each projected year, and the total extra money the increase pulls across the whole period, which is the number that matters when you are deciding whether to fight, negotiate or move. Landlords get the same math from the other side: what an increase is worth annually versus the cost of a vacancy and a turnover, and where the legal caps sit — California, Oregon and a growing list of cities limit the percentage, and nearly everywhere limits the notice.
The short answer
A 5% increase on $1,500 rent adds $75 a month — and compounds: the same 5% for three straight years reaches $1,736, not $1,725, and ten years reaches $2,443, a 63% rise. Some states cap the percentage: California caps most covered rent at 5% plus CPI, to a maximum of 10%.
Compounds each year in the projection.
New monthly rent
$1,575.00
Up $75.00 per month at 5%.
- Annual rent at the new rate
- $18,900.00
The math is jurisdiction-neutral; the rules around it are not. Many places require written notice before an increase takes effect, and some cap annual increases — check your local rules before acting on the number.
How to use Rent Increase Calculator
- 1
Enter the current rent
Use the monthly rent as it stands today, before any proposed increase.
- 2
Set the increase percentage and horizon
Enter the proposed percentage and how many years to project. Consecutive annual increases of the same size compound — the calculator applies that correctly.
- 3
Read the yearly path and the total
The result shows the new rent, the rent at the end of each year, and the cumulative extra paid versus no increase. That total is the negotiating figure.
Why use this tool
- Compounded projections year by year, not a single multiplied figure
- Total extra paid across the projection — the number to weigh against moving costs
- Handles 1 to 10 year horizons for lease planning and renewal negotiations
- State cap context for California, Oregon and notice rules where they apply
- Runs in your browser — rent figures never leave your device
Frequently asked questions
- How much can a landlord legally raise rent?
- There is no federal cap. Where state or local rent control exists it limits the percentage: California's AB 1482 caps most covered units at 5% plus the regional CPI, to a maximum of 10%, and exempts buildings less than 15 years old. Oregon caps annual increases at the lesser of 10% or 7% plus CPI — 9.5% for 2026. Elsewhere, the limit is usually the notice period, not the percentage.
- Does a 5% increase every year mean 50% over ten years?
- No — 63%. Each year's increase applies to the previous year's rent, so the rent compounds like interest: $1,500 at 5% a year reaches $1,736 after three years and $2,443 after ten. Renters budgeting from the naive 50% will be short; landlords quoting the compounded figure in a renewal letter should expect the tenant to notice.
- How much notice does a rent increase require?
- It varies by state and by tenancy type, and it applies to month-to-month leases — a fixed-term lease generally cannot be raised mid-term at all unless the lease itself has an increase clause. California requires 30 days' notice for increases of 10% or less and 90 days above that; Oregon requires 90 days for most tenancies. Check your state's landlord-tenant statute for the exact figure.
- What is 5% plus CPI in practice?
- AB 1482's formula tracks inflation: if the regional CPI runs at 3%, the covered cap is 8%. The rule never allows more than 10% regardless of CPI, and landlords must notify tenants of the allowance in the notice itself. It is a ceiling, not a benchmark — many renewals still land below it because turnover costs more than the forgone increase.
- Can a landlord raise the rent during a fixed-term lease?
- Generally no. A 12-month lease locks the rent for its term; the increase happens at renewal. The exceptions are lease clauses that schedule an increase — common in commercial leases — and local rules that treat long-term month-to-month tenancies differently. Read the renewal clause before assuming either way.
- Is the increase worth the risk of losing the tenant?
- Price it honestly: a $75 increase earns $900 a year, while a turnover typically costs one to two months of vacancy plus make-ready — often $3,000 to $5,000 on a mid-market unit. The calculator's total-extra-paid figure over two or three years is the right comparison, and it is why a smaller, predictable increase usually beats a large one.
- Does the calculator account for inflation?
- It works in nominal dollars. A 5% nominal increase during 3% inflation is about 2% in real terms — the landlord is earning more dollars for the same unit, but not much more purchasing power. Both sides of a negotiation should run the same number; they just quote it differently.
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