CPI Rent Calculator

Formula

The formula to calculate the New Rent From CPI (NR) is:

\[ NR = PR + PR \times \frac{CPI}{100} \]

Where:

$ NR $ is the New Rent From CPI ($)
$ PR $ is the previous term rent ($)
$ CPI $ is the CPI over the past year (%)

What is the CPI Rent Adjustment?

The CPI Rent Adjustment is a method used to adjust rent based on the Consumer Price Index (CPI). It ensures that the rent keeps pace with inflation by adjusting the rent amount according to the percentage change in the CPI over a specified period, typically one year.

Example Calculation

Let's assume the following values:

Previous Rent (PR) = $1,000
CPI over the Past Year = 3%

Using the formula to calculate the new rent:

\[ NR = 1000 + 1000 \times \frac{3}{100} = 1000 + 30 = 1030 \]

The New Rent From CPI (NR) is $1,030.