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About this tool
Project rent year by year at an agreed escalation, total the outgo, compare a second scenario and see the cost in today's money.
This planner compounds an agreed rent escalation across every renewal cycle, so the rent in cycle k is the starting rent multiplied by (1 + escalation)^k, and totals the outgo across a horizon you choose. It also discounts that total back to today's money using a present-value deflator, and runs a second scenario alongside so a negotiated percentage point can be priced in rupees. It suits tenants reviewing an escalation clause and landlords modelling revenue from a property.
Open Rent Increment Planner on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Shows each renewal cycle's rent, not just the first-year figure.
Prices the difference between what is offered and what you are asking for.
Discounts the future rent stream so long horizons stay comparable.
Residential agreements in Indian metros commonly carry a 5% to 10% escalation per renewal, with 8% to 10% typical in high-demand city markets and 5% in slower ones. The figure is negotiable and must be written into the agreement, because an escalation that is not in the contract cannot be enforced mid-term.
Rent grows by (1.10)^5, which is 1.61, so Rs 25,000 becomes about Rs 40,263 a month in the fifth renewal. Across those five years you pay roughly Rs 18.3 lakh in total, about 10% more than the Rs 16.6 lakh a 5% escalation would cost on the same flat.
It goes up whenever the agreement says it does, which is usually at renewal. Since 11-month agreements are the norm in India to stay outside the compulsory registration rule in Section 17 of the Registration Act, 1908, the escalation in those cases lands every 11 months, which is one extra increase roughly every 11 years compared with an annual cycle.
No. Mid-term increases are not permitted unless the agreement provides for them, and several states have rent control laws that cap the frequency or size of a revision for covered properties. If you receive an increase you believe is outside the agreement, check the escalation clause and take legal advice before responding.
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