How to use the rent increase calculator
- Enter the current monthly rent.
- Choose whether you know the increase % or the new rent, and enter it.
- See the new rent, the increase per month and per year, and the rent in five years at the same rate.
Common increases on $1,800 rent
| Increase | New rent | More per month |
|---|---|---|
| 2% | $1,836 | $36 |
| 3% | $1,854 | $54 |
| 4% | $1,872 | $72 |
| 5% | $1,890 | $90 |
| 7% | $1,926 | $126 |
| 10% | $1,980 | $180 |
For landlords: setting a fair increase
- Check the market. Compare similar units nearby; the cap rate calculator shows how rent affects your property's value.
- Count the cost of turnover. A vacant month plus cleaning and listing can cost more than the increase brings in. A good tenant at slightly below market can be the better deal.
- Follow the rules. Give proper written notice and stay within local caps.
- Be consistent. Small yearly increases are easier for tenants than occasional big jumps.
If a tenant moves in or out mid-month, use the prorated rent calculator for the partial month.
Writing the rent increase notice
A clear notice avoids disputes. Put it in writing and include:
- the tenant's name and the rental address;
- the current rent and the new rent, in dollars;
- the date the new rent starts, giving at least the notice your state requires;
- how and where to pay, if that changes;
- your name, signature and the date.
Deliver it the way your lease or state law requires, and keep a copy. If you're also changing other terms, such as utilities or parking, list them separately so the tenant can see exactly what's different.
For tenants: is the increase reasonable?
- Compare with similar rentals in the area.
- Check your lease and local laws on notice and caps.
- Work out what it means for your budget; the rent affordability calculator shows a comfortable rent for your income.
- If it's too much, consider negotiating a smaller increase for a longer lease, or compare with buying using the rent vs buy calculator and our guide on whether to rent or buy a house.
Track rent changes for every unit
RentRoll is a landlord dashboard with a rent roll showing each unit's tenant, lease dates and expected rent, so you can plan renewals and increases on time and see the effect on income. Try the free demo with sample buildings.
General information; landlord-tenant laws vary by state and city.
Frequently asked questions
How do you calculate a rent increase?
How do you calculate the percentage of a rent increase?
What is a normal rent increase per year?
Is there a limit on how much rent can go up?
How much notice is needed for a rent increase?
Should landlords raise rent every year?
Written by
Finance Specialist & Editor, VaultlyApps
Emma Whitfield writes and edits the VaultlyApps money guides and free calculators. Her focus is US household finance — budgeting on a real paycheck, paying down credit card and student debt, emergency funds and savings goals, renting — and the money side of freelancing and small-business income, from pricing and profit margins to self-employment tax. Every guide is researched against primary sources such as IRS publications and the CFPB, every number is checked in our tested calculators, and tax content is reviewed each year when new IRS figures come out. Emma is not a licensed financial adviser or tax preparer; her work is general education, not personal advice.
Researched against primary US sources, checked against independent calculators and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
