Enter the previous term rent ($) and the CPI over the past year (%) into the calculator to determine the New Rent From CPI.
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New Rent From CPI Formula
The following formula is used to calculate the New Rent From CPI.
NR = PR + PR * CPI/100
- Where NR is the New Rent From CPI ($)
- OR is the previous term rent ($)
- CPI is the CPI over the past year (%)
To calculate new rent from CPI, multiply the previous rent by the CPI over the last year, then add the result to the previous terms rent.
How to Calculate New Rent From CPI?
The following example problems outline how to calculate New Rent From CPI.
Example Problem #1:
- First, determine the previous term rent ($). In this example, the previous term rent ($) is given as 1500.
- Next, determine the CPI over the past year (%). For this problem, the CPI over the past year (%) is given as 6.
- Finally, calculate the New Rent From CPI using the equation above:
NR = PR + PR * CPI/100
The values given above are inserted into the equation below:
NR = 1500 + 1500*6/100 = 1590 ($)
Example Problem #2:
The variables needed for this problem are provided below:
previous term rent ($) = 1600
CPI over the past year (%) = 4
Entering these values and solving gives:
NR = 1600 + 1600* 4/100 = 1664 ($)
