Enter the current cost of rent and the previous cost of rent into the calculator. The calculator will display the percentage increase of rent year over year.

## Rent Increase Formula

The following formula is used to calculate the percent increase in rent from year to year.

%R = (RF-RI)/RI *100

• Where %R is the rent increase percent
• RF is the current rent
• RI is the initial rent

## Rent Increase Definition

A rent increase is defined as a percentage increase in rent over a certain time period, most often a year.

## How to calculate a rent increase?

First, you need to determine your initial rent cost from the previous year. Depending on what you analyze you can include utilities and other bills in this cost if you want to look at the increase from a total cost of living perspective. Next, determine the current cost of rent using the same factors. Finally, enter the values into the formula above to calculate the increase.

## FAQ

How much should rent increase each year?

Rent typically should increase no more than 5% each year and generally follows the value of homes.