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.

Enter comparable indices with the same series and reference base.

USD rent estimate. Use the exact CPI series and reference periods in the lease. Floors, caps and annual scenario rates are user assumptions; this does not determine a legally allowed rent.

Optional settings

Blank applies no floor; enter zero to prevent a decrease.

Blank applies no cap.

Blank omits the comparison.

Blank means five annual adjustments. The same applied rate repeats; this is not a CPI forecast.

New Rent From CPI Formula

The following formula uses the applied percentage after any entered floor or cap. The annual scenario repeats this rate once per year and rounds each adjustment to cents, with half cents rounded upward; it is not an inflation forecast. The fixed comparison is independent of the CPI cap and floor. Weekly payment equivalents use 52 payments.

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

To calculate new rent, multiply previous rent by (1 + applied CPI change / 100). From indices, CPI change = (current / base − 1) × 100. Use the same CPI series and reference base and the periods named in the lease. Optional floor and cap constrain that rate; blank imposes no constraint. This USD estimate does not determine the rent legally permitted.

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 ($)