Free calculator
Rent Increase Calculator
Work out a new rent in dollars and percent, and what it adds over a year.
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Estimates for planning only. Not financial or tax advice.
What to enter
- Current monthly rent: what the tenant pays today under the lease.
- Increase (%): the percentage you are considering. Try a few values to see the dollar effect before you decide.
Working backwards from a dollar amount? Divide the dollar increase by the current rent and multiply by 100 to get the percentage.
How to calculate a rent increase
New rent = current rent × (1 + increase %). A 4% increase on $1,400 is $1,400 × 1.04 = $1,456, which is $56 more a month and $672 more a year.
To find the percentage from two amounts, divide the difference by the old rent: ($1,456 − $1,400) ÷ $1,400 = 4%.
Before you raise the rent
- Check the rules where the property is. Some states and cities limit how much or how often rent can go up, and most require written notice in advance. The notice period often depends on the lease type and the size of the increase.
- Check your lease. In a fixed-term lease, rent usually cannot change until the term ends unless the lease says otherwise.
- Compare with the market. Look at similar listings nearby. A modest increase that keeps a good tenant often beats a vacancy: one empty month can cost more than a year of a small increase.
- Keep a record. Note the date, the old and new rent, and when you sent notice.
Keep a rent history for every tenant
The Tenant Lease Tracker keeps a rent history for each lease, shows the percentage change each time, and flags leases that end in the next 90 days so you can plan renewals and increases early. The Rent Collection Log then tracks the new amount from the month it starts. Read how to set up a rent ledger for a simple setup.
Questions landlords ask
How much can I raise the rent?
It depends on where the property is. Some states and cities cap increases or require longer notice; many do not. Check your state and local rules, or ask a local attorney or landlord association.
How much notice do I need to give?
Notice rules vary by state, city, and lease type. Many places require 30 to 60 days for month-to-month tenants, and some require more for larger increases. Check the rules where your property is.
Is a yearly increase better than a larger one every few years?
Many landlords prefer small, regular increases that track the market, because tenants can plan for them and a sudden large jump is more likely to cause a move-out.
Should I raise rent for a good long-term tenant?
Many landlords raise rent a little less for reliable tenants, because a turnover costs cleaning, repairs, advertising, and lost rent. Compare the increase with what a vacancy would cost.