Fixed Rent Increase Calculator
Project rent under a fixed percentage escalation clause, compounded year by year. Common in Australian commercial leases at 3 to 4 percent.
Rent tied to inflation instead? Use the CPI Rent Increase Calculator.
How fixed increases work
A fixed increase clause escalates rent by the same percentage at every review, regardless of inflation. Because each increase applies to the already-increased rent, the effect compounds: 3.5% a year is not 17.5% after five years but 18.8%.
rent after n years = current rent × (1 + p ÷ 100)ⁿ
Frequently asked questions
What is a fixed rent increase clause?
A lease term that raises the rent by a set percentage at each review date, most commonly annually. It gives both parties certainty, unlike CPI reviews which follow inflation.
Is a fixed increase better than a CPI increase?
It depends on inflation. When inflation runs below the fixed rate the landlord does better; when it runs above, the tenant does. Many leases mix both across the term, or use the greater of the two, where legislation allows.
Do fixed increases compound?
Yes. Each increase applies to the current rent, which already includes every previous increase. Use the schedule above to see the compounding effect year by year.
What is a typical fixed increase in Australia?
Most commercial leases with fixed reviews sit in the 3 to 4 percent range, but it is entirely a matter of negotiation and market conditions at signing.
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Know the market before you negotiate
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The calculators on this site are provided for general information only. Results are estimates, do not account for the terms of any specific lease, loan or property, and do not constitute financial, legal or valuation advice.