Rent increase calculator: work out a 5% or 10% rent hike and the new rent

Rent increase calculator (rent escalation calculator)

How to calculate a rent increase or yearly rent increment

Increases compound. A 5% increase every year on ₹20,000 gives ₹21,000 in year two, ₹22,050 in year three and ₹23,153 in year four, because each increase is worked out on the new rent. The calculator shows this year by year.

To find the percentage between two rents, divide the new rent by the current rent, subtract 1 and multiply by 100. Going from ₹18,000 to ₹19,500 is (19,500 ÷ 18,000 − 1) × 100 = 8.33%.

How much rent increase per year is normal in Bangalore?

There is no official figure. In practice, most Bengaluru rent agreements carry an escalation clause of 5% to 10% on each renewal. This is common practice, not law. What the market will bear depends on the area, the building and how rents nearby have moved.

• "Per year" often means "per renewal". With 11-month agreements, the increase usually applies when you sign the next agreement, not on a calendar date.
• Write the percentage into the agreement. "Rent will increase by 5% on each renewal" avoids a negotiation every year. Our rent agreement format includes this clause.
• A good tenant who pays on time is worth a smaller increase. On ₹20,000, a 5% increase brings in ₹11,000 over an 11-month agreement. One empty month costs you ₹20,000, before any brokerage.

Rent increase rules in Karnataka

For most Bengaluru flats, the rent agreement sets the rules for increases. These are the legal points we could confirm. Rules differ by state, so check yours. Our guide to rent increase rules in Bangalore goes into the Karnataka Rent Act, notice and escalation clause wording in more detail.

• During the agreement's term, you can only change the rent if the agreement allows it. Otherwise the agreed rent applies until the term ends.
• At renewal, you and the tenant agree a new rent. If the tenant does not accept it, either side can decline to renew, subject to the notice terms in the agreement.
• The Karnataka Rent Act, 1999 (text on India Code) lets the Rent Controller fix a standard rent, but section 2(3) leaves out many homes, including buildings for 15 years after construction or substantial renovation and premises above a rent threshold. Most newer Bengaluru flats fall outside it. If your building is older and the rent is low, ask a lawyer whether the Act applies.
• The 2025 amendment. The Karnataka Rent (Amendment) Bill, 2025 replaces jail terms in the Rent Act with money penalties. We found nothing in it about rent increases.
• The Model Tenancy Act, 2021 says an agreement should set out how and when rent is revised, and lets a Rent Authority decide disputes (PRS summary). Commentaries describe a three-month written notice for an increase where the agreement is silent. It is a template for states (PIB); we found no record of Karnataka adopting it. Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Assam had revised their laws on its lines by July 2022 (PIB).

Rent increase notice to tenant: template

The calculator writes this message with your numbers filled in. If you prefer to write it yourself, copy this version. For a signed letter to print or send as a PDF, use the rent notice letter generator.

Dear [Tenant name],

As per our rent agreement for [property address], the current agreement ends on [end date].

From [effective date], the monthly rent will be ₹[new rent], up from ₹[current rent]. That is an increase of [x]%, or ₹[difference] a month. All other terms stay the same.

Please let me know by [reply date] whether you would like to renew on these terms, so we can prepare the new agreement. Happy to discuss.

Thank you,
[Your name]
[Phone number]

After you agree the new rent

1. 1

   Put it in a new agreement

   Sign a fresh agreement or a stamped renewal with the new rent and start date. A WhatsApp message alone is weak evidence of a changed rent.

2. 2

   Check the deposit

   If your deposit is a number of months' rent, agree whether it is topped up. See our security deposit rules in Bangalore.

3. 3

   Update your rent records

   Make sure reminders and receipts show the new amount from the month it applies, so the first month at the new rent does not start with a dispute.

Frequently asked questions