Calculate CPI-linked rent from old and new index values or a known CPI rate, apply optional floor and cap terms, and compare multi-year CPI versus fixed-rate rent.

Use the exact non-seasonally-adjusted series and reference periods named in the lease.
Negative values model deflation unless a floor applies.
Show formula and steps

New Rent From CPI Formula

The following formula is used to calculate the New Rent From CPI. 

NR = PR + PR × CPI / 100
  • Where NR is the New Rent From CPI ($)
  • OR is the previous term rent ($) 
  • CPI is the CPI over the past year (%) 

To calculate new rent from CPI, multiply the previous rent by the CPI over the last year, then add the result to the previous terms rent.

How to Calculate New Rent From CPI?

The following example problems outline how to calculate New Rent From CPI.

Example Problem #1:

  1. First, determine the previous term rent ($). In this example, the previous term rent ($) is given as 1500.
  2. Next, determine the CPI over the past year (%). For this problem, the CPI over the past year (%) is given as 6.
  3. Finally, calculate the New Rent From CPI using the equation above: 

NR = PR + PR * CPI/100

The values given above are inserted into the equation below:

NR = 1500 + 1500*6/100 = 1590 ($)

Example Problem #2: 

The variables needed for this problem are provided below:

previous term rent ($) = 1600

CPI over the past year (%) = 4

Entering these values and solving gives:

NR = 1600 + 1600* 4/100 = 1664 ($)