Enter the monthly rent ($), the interest/return rate (%/year), and the total number of years into the calculator to determine the Compound Rent.
Compound Rent Formula
The following formula is used to calculate the Compound Rent.
CR = MR * (1+(r/100))^t
- Where CR is the Compound Rent ($)
- MR is the rent ($)
- r is the interest/return rate (%/year)
- t is the total number of years
How to Calculate Compound Rent?
The following example problems outline how to calculate Compound Rent.
Example Problem #1
- First, determine the monthly rent ($). In this example, the monthly rent ($) is given as 10000 .
- Next, determine the interest/return rate (%/year). For this problem, the interest/return rate (%/year) is given as 5 .
- Next, determine the total number of years. In this case, the total number of years is found to be 5.
- Finally, calculate the Compound Rent using the formula above:
CR = MR * (1+(r/100))^t
Inserting the values from above yields:
CR = 10000 * (1+(5/100))^5 = 12762.81 ($)
Example Problem #2
The variables needed for this problem are provided below:
monthly rent ($) = 15000
interest/return rate (%/year) = 6
total number of years = 10
Entering these values and solving gives:
CR = 15000 * (1+(6/100))^10 = 26,862.71 ($)
