Compound Rent Calculator

Formula

To calculate the Compound Rent (CR):

\[ CR = MR \times (1 + \frac{r}{100})^t \]

Where:

$CR$ is the Compound Rent ($)
$MR$ is the Monthly Rent ($)
$r$ is the Interest/Return Rate (%/year)
$t$ is the Total Number of Years

What is Compound Rent?

Compound rent measures the total rent accumulated over a period of time, considering the interest or return rate. It is calculated by multiplying the monthly rent by the compounded interest rate over the total number of years.

Example Calculation

Let's assume the following values:

Monthly Rent ($MR$) = $1000
Interest/Return Rate ($r$) = 5%/year
Total Number of Years ($t$) = 10

Using the formula:

\[ CR = 1000 \times (1 + \frac{5}{100})^{10} = 1000 \times 1.62889 = 1628.89 \text{ dollars} \]

The Compound Rent is $1628.89.