Rental Inflation Calculator

Formula

To calculate the Adjusted Rent:

\[ AR = IR \times (1 + IR\%)^Y \]

Where:

$AR$ is the adjusted rent ($)
$IR$ is the initial rent ($)
$IR\%$ is the annual inflation rate (%)
$Y$ is the number of years

Rental Inflation Definition

Rental inflation refers to the increase in rental prices over time due to the general rise in the price level of goods and services in an economy. It is a specific application of the concept of inflation to the rental market.

Example Calculation 1

Let's assume the following values:

Initial Rent ($IR$) = $1,000
Annual Inflation Rate ($IR\%$) = 3%
Number of Years ($Y$) = 5

Using the formula:

\[ AR = 1000 \times (1 + 0.03)^5 = 1000 \times 1.159274 = 1159.27 \]

The adjusted rent is $1,159.27.

Example Calculation 2

Let's assume the following values:

Initial Rent ($IR$) = $1,500
Annual Inflation Rate ($IR\%$) = 2%
Number of Years ($Y$) = 10

Using the formula:

\[ AR = 1500 \times (1 + 0.02)^10 = 1500 \times 1.218994 = 1828.49 \]

The adjusted rent is $1,828.49.