1. What is CPI Rent Increase?

A CPI (Consumer Price Index) rent increase adjusts commercial lease payments based on inflation. This method ties rent adjustments to official inflation measures, typically using the CPI percentage published by government agencies.

2. How the Calculation Works

The calculator uses this simple formula:

Where:

• Old Rent — Current rent amount before increase
• CPI — Consumer Price Index percentage increase

Example: If current rent is $2,000 and CPI is 3.5%, new rent would be $2,000 × 1.035 = $2,070.

3. Importance of CPI Adjustments

Details: CPI adjustments help maintain the real value of rental income for landlords while providing predictable, inflation-based increases for tenants. Many commercial leases include CPI adjustment clauses.

4. Using This Calculator

Tips: Enter your current rent amount and the applicable CPI percentage. The calculator will show your new rent amount after the CPI adjustment.

5. Frequently Asked Questions (FAQ)

Q1: Which CPI index should I use?
A: Typically the All Items CPI for your region, but check your lease agreement as it may specify which CPI index to use.

Q2: How often are CPI adjustments made?
A: Most commercial leases specify annual adjustments, but your lease terms will dictate the frequency.

Q3: Are there caps on CPI increases?
A: Some leases include maximum (and sometimes minimum) annual increase percentages regardless of CPI.

Q4: Is CPI the only way to adjust rent?
A: No, other methods include fixed percentage increases, market reviews, or combinations of methods.

Q5: Where can I find current CPI data?
A: Government statistical agencies (like the BLS in the US or ABS in Australia) publish regular CPI updates.