Work out rent escalation instantly with clear inputs, formula shown and shareable results.
Commercial leases typically escalate in steps rather than annually: a fifteen percent uplift every three years is the common Indian convention and works out at about 4.8 percent a year compounded. Stepping the rent year by year through the term gives both the final rent and the total commitment.
Stepped escalation
Rent after k reviews = starting rent x (1 + escalation)^k, a review every N years
Equivalent annual rate
(1 + escalation)^(1/N) - 1
Rent after k reviews = starting rent x (1 + escalation)^k, a review every N years. Commercial leases typically escalate in steps rather than annually: a fifteen percent uplift every three years is the common Indian convention and works out at about 4.8 percent a year compounded.
It gives the tenant certainty and the landlord a known floor, but it disconnects from inflation. Where inflation is volatile an index-linked review protects the landlord better.
This calculator takes 4 inputs: Starting monthly rent, Escalation at each review, Years between reviews, Lease term. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.