Rent Increase Calculator – Percentage, New Rent & Turnover Break-Even

Rent increase calculator

Work out the new rent, and whether a bigger increase is worth the risk of the tenant moving out.

Results

Monthly increase–

Extra income per year–

Rent after projected years–

Increase % to reach target rent–

Cost if the tenant moves out–

Months of increase to pay for a turnover–

New monthly rent–

The math

New rent = current rent × (1 + increase %)
Increase % = (new rent − current rent) ÷ current rent
Turnover cost = weeks vacant × (new rent × 12 ÷ 52) + turnover costs

Example: a 5% increase on $1,500 is $75 a month, bringing the rent to $1,575 and adding $900 a year. Going from $1,500 to $1,650 is a 10% increase. At 5% a year for 3 years, the rent reaches $1,736.44.

Is the increase worth a turnover?

If the increase pushes a good tenant out, four weeks of vacancy at $1,575 plus $1,500 of turnover work costs about $2,954. It takes about 39 months of the $75 increase to earn that back. That's why many small landlords prefer modest, regular increases with good tenants to large jumps. It's also why it pays to know what similar units actually rent for.

Check the rules first

Notice periods for rent increases are set by state and local law, and some places limit the amount: for example, the statewide caps in California and Oregon, and local rent control in cities such as New York. Increases usually can't take effect during a fixed-term lease unless the lease allows it. Check your state and city rules before sending notice.

Related calculators

Vacancy costWhat an empty unit really costs.Cash flow calculatorMonthly NOI, mortgage, cash flow and DSCR.Prorated rentPartial-month rent for move-in or move-out.

FAQ

How do I calculate a rent increase percentage?

Subtract the current rent from the new rent, divide by the current rent, and multiply by 100. Going from $1,500 to $1,650 is ($150 ÷ $1,500) × 100 = 10%.

How much can a landlord raise rent?

In most of the US there's no cap on the amount, but notice requirements apply. Some states and cities have rent-stabilization or rent-control limits. Always check your local rules.

How much notice do I need to give?

It depends on your state, city and lease type. Notice periods are often 30 to 90 days and can depend on the size of the increase or the length of the tenancy. Check local law.