Rental Index Calculator

Formula

The formula to calculate the adjusted rent based on the rental index is:

\[ \text{Adjusted Rent} = \text{Base Rent} \times \left( \frac{\text{Current Index}}{\text{Base Index}} \right) \]

Where:

Adjusted Rent is the rent amount after adjustment based on the index change.
Base Rent is the initial rent amount before any index adjustments.
Current Index is the rental index at the time of adjustment.
Base Index is the rental index at the time the base rent was set.

What is a Rental Index?

A rental index is a measure used to track changes in rental rates over time. It is often used in lease agreements to adjust rent periodically to reflect changes in the market. The index is typically based on a set of data that represents the average rent prices in a specific area or for a particular type of property.

Example Calculation

Let's assume the following values:

Base Rent = $1000
Current Index = 120
Base Index = 100

Using the formula:

\[ \text{Adjusted Rent} = 1000 \times \left( \frac{120}{100} \right) = 1200 \text{ dollars} \]

The Adjusted Rent is $1200.