RentCalc / Rent increase
Rent increase calculator
Turn a percentage into dollars or dollars into a percentage, see what it adds over a year, and how several years of raises stack up. Useful whether you're sending the notice or receiving it.
New monthly rent
$1,575.00
+$75.00 a month (5.00%)
Sending the notice? Draft a rent increase letter with these numbers.
Year by year at 5.00%
| Year | Monthly rent | Yearly rent | Total increase so far |
|---|---|---|---|
| 1 | $1,575.00 | $18,900 | 5.0% |
| 2 | $1,653.75 | $19,845 | 10.3% |
| 3 | $1,736.44 | $20,837 | 15.8% |
| 4 | $1,823.26 | $21,879 | 21.6% |
| 5 | $1,914.42 | $22,973 | 27.6% |
Why "5% a year" is more than 5% times the years
Every renewal raises the rent you already pay, including last year's raise. The light steps show what simple addition would predict, and the dark steps are what actually happens on a $1,000 rent.
After 6 years: simple sum $1,300, compounded $1,340. The gap is the raise-on-a-raise. It's small at first and widens every year, which is why multi-year lease offers with a fixed rent can be worth more than they look.
Before you raise (or accept) a rent increase
- Check the lease term. A fixed-term lease locks the rent until it ends unless the lease itself allows an increase.
- Check local caps and notice periods. These are set by state and city law and change over time, so read the current official guidance for your area.
- Compare with the market. Look at similar listings nearby. Tenants can use them to negotiate, and landlords can use them to weigh a raise against the cost of a vacant month.
- Do the vacancy maths. One empty month at $1,500 wipes out a year of a $125 raise. Keeping a good tenant is often worth a smaller increase.
Questions people ask
How do I calculate a rent increase percentage?
Subtract the old rent from the new rent, divide by the old rent and multiply by 100. Going from $1,500 to $1,605 is $105 ÷ $1,500 = 7%.
How much can a landlord raise rent?
In most US states there is no cap for market-rate units, as long as the lease term has ended and proper notice is given. Statewide caps exist in California (AB 1482: 5% plus local inflation, never more than 10% a year), Oregon (7% plus CPI, capped at 10%) and Washington (7% plus CPI, capped at 10%), with exemptions for newer buildings. Cities such as New York, Los Angeles and San Francisco have their own rent stabilization rules.
What is a normal rent increase per year?
Many landlords aim to keep pace with inflation plus a little, so 3–5% a year is a common range for renewals, though it swings with the local market. The shelter component of the Bureau of Labor Statistics CPI is the standard reference for how rents are moving nationally.
How much notice is required for a rent increase?
It depends on the state and the size of the increase. Thirty days is common for month-to-month tenancies. Some states require more: California requires 90 days for increases over 10%, and Washington requires 90 days for any increase. Fixed-term leases can't be raised mid-term unless the lease allows it.
How do multiple years of increases add up?
They compound. Each raise applies to the already-raised rent, so five years at 5% is a 27.6% increase, not 25%. The year-by-year table shows this.