Rent Linked to the Index: How to Calculate the New Rent

Many leases link the rent to the consumer price index: when the index goes up, the rent goes up with it. Working out the new rent takes one formula. Our free rent index calculator does it for you.

The formula

new rent = current rent × new index ÷ base index

• Base index: the index named in the lease, usually the one known on the day it was signed.
• New index: the latest index known on the date the rent is updated.

A worked example

Rent of 5,000, base index 108.1, new index 112.4:

5,000 × 112.4 ÷ 108.1 = about 5,199.

What if the index goes down?

Some leases say the rent never drops below the original amount, even if the index falls. The calculator has an option for this: turn on "no decrease" and the rent stays the same when the index is lower.

Where to find the index

In Israel the Central Bureau of Statistics publishes the consumer price index every month. Use the figures for the months your lease names.

Read your lease first

Check how often the rent is updated (every month, every year, or at renewal), which index is the base, and whether there's a floor. If it isn't written in the lease, the rent isn't linked.

For landlords and property managers

Landlords with one or two units can track leases and rent in the free Estatemar app. Offices that manage rentals for owners keep every lease, rent payment and repair in the Company Dashboard.