Rental Index Calculator

Calculate Adjusted Rent





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:

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:

Using the formula:

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

The Adjusted Rent is $1200.